MUMBAI | NEW DELHI: Vodafone IdeaNSE -25.00 % (VIL) may offer the government a small part of its statutory dues by January 23 to ensure it doesn’t get a defaulter’s tag or incur the displeasure of the Supreme Court, and then seek some relief, in a bid to bring back the telecom company from the jaws of insolvency, three people familiar with the matter said. Simultaneously, the telco plans to seek an extension of the January 23 deadline from the Supreme Court.
“The top management have chalked out the next steps after the apex court dismissed the telco’s review petition,” said one of the people.
The government has estimated Vodafone Idea’s total dues, which include licence fees, spectrum usage charges (SUC), penalties and interest, at over Rs 53,000 crore but the telco is expected to submit a lower figure in its self-assessment.
Vodafone Idea’s shares ended 25.21% lower at Rs 4.51 on BSE, having plunged over 39% during the day, as investors exited on fears that telco will collapse in the absence of relief from the judiciary.
After offering a small payment, Vodafone Idea may ask the Centre to refund or adjust some of the Rs 9,000 crore pending input tax credit under GST that it believes the government owes it, one of the persons said. He added that the strategy of the company is to show the telecom department that it is not defaulting on its payments and is trying all possible ways to meet statuary obligations.
Another person in direct knowledge of the matter said that the loss-making telco may offer under Rs 4,000 crore “as a token amount on January 23”. He added the company won’t dig into its cash balances since it is a cashflow-negative company.
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