Jio: Airtel, Vodafone Idea have sufficient capacity to clear dues

Mukesh Ambani-led Reliance Jio on Thursday wrote to Telecom Minister Ravi Shankar Pras saying firms (Bharti Airtel and Vodafone Idea) have "sufficient" financial capacity to clear ir liabilities. Jio also slammed Cellular Operators Association of India (COAI) for writing ex-parte to government on financial distress in sector, Jio said COAI was "blackmailing" to "extract relief from government" after all legal recourse h expired.

Jio writes letter to Department of Telecom

"We submit that so-called affected service providers have sufficient financial capacity to pay government dues by monetising ir existing assets/investments and by issuing fresh equity in ir companies," it wrote in letter to Pras without mentioning Bharti Airtel and Vodafone Idea.

Jio said it "strongly disagrees with COAI submission that in absence of immediate relief by government telecom sector will collapse and re would be an unprecedented crisis in sector as two of three private operators will be facing extreme financial crisis."

"We submit that COAI has used threatening and blackmailing tone with government by referring to possible job loss, quality of service loss and loss of investment in sector and its contentions border on contempt of Supreme Court judgement, especially when Supreme Court has prescribed three months' time to deposit due amount.

"COAI is clearly insinuating that if immediate relief by doing away with all legal financial obligations emerging from Supreme Court's judgment in justed gross revenue case is t provided, two operators might stop operations. We request government to strongly rebuff such suggestions and insinuations," it wrote.

In its Wednesday letter, Jio accused COAI of "serious breach of trust" and having a "prejudiced mindset completely laced with one-sided thought process". COAI in its letter to government has said that in absence of immediate relief by Centre, two of three private mobile operators -- Airtel and Vodafone Idea which provide services to 63 per cent of current subscriber base -- will face "unprecedented crisis".

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(With ncy inputs)