“If you don’t get the remedies being suggested, the situation is critical,” Vodafone CEO
Nick Read said at a press round-table in London on Tuesday. “If you’re not a going concern, you’re moving into a liquidation scenario — can’t get any clearer than that.”
Vodafone, which owns 45 per cent of Vodafone Idea, wants a two-year delay on spectrum payments and lower licence fees and taxes. It’s also calling for the spectrum payments demanded by the court to be spread over 10 years and is asking for a waiver on interest and penalties.
Read and Vodafone Chairman Gerard Kleisterlee met Indian government officials in September and set out the relief proposals, arguing that Vodafone was the largest foreign direct investor in the country. A government committee is considering the request and Read said he expected to hear more in the coming weeks.
Vodafone wrote off the carrying value of its share in the loss-making joint venture in the half-year results after analysts flagged the possibility of further impairments.