New Delhi, Agencies. After Friday's order of the Supreme Court relating to the fee of AGR, there was chaos within the telecom world of the nation. After this order, the existence of Vodafone Idea, which was as soon as the biggest firm when it comes to subscribers, has been questioned. The telecom trade in India has seen firms equivalent to Etisalat DB, Reliance Communications, Sistema Shyam and Aircel shutting down and if present situations are thought-about, Vodafone can even consolidate its business from India if funds will not be out there. <! –
More than one lakh individuals are more likely to be affected by this.
VIL owes greater than 53 thousand crores
The Supreme Court, in its resolution on October 24, 2019, ordered fee of Adjusted Gross Revenue (AGR) to telecom firms. This order created an enormous legal responsibility of Rs 1.47 lakh crore on the telecom firms already going through super competitors. Vodafone Idea Ltd (VIL) has a legal responsibility of about Rs 53,038 crore. The Supreme Court on Friday reprimanded the telecom firms and the Department of Telecommunications for paying this excellent quantity. After this, the Department of Telecommunications gave telecom firms as much as 11:59 minutes on Friday night time to pay their dues.
Reliance Jio, Airtel to compete in telecom sector
BofA Securities mentioned in a observe on Friday, "It will have a negative impact on VIL". He had questioned whether or not Hindustan is shifting in direction of a market of two firms. Vodafone Idea Chairman Kumar Mangalam Birla has already mentioned that if the corporate doesn’t get reduction within the situation of AGR, then he can shut his business. The Vodafone Group has additionally mentioned that it’ll not make investments freshly in Vodafone Idea.
Job of multiple lakh folks in peril
In such a scenario, if the corporate stops its operation, then multiple lakh folks might be unemployed. The firm employs 11,700 workers on its payroll, whereas the corporate not directly employs round one lakh folks. According to Reliance Communications Chairman Anil Ambani, 20 lakh folks have misplaced their jobs within the telecom world.