Vodafone Idea May Shut Down If Government Doesn’t Help, Says Company

Telecom company Vodafone Idea (VIL) has said that it may not be able to continue its services after this financial year if it doesn’t get help from the government soon.

In a letter to the Department of Telecommunications, VIL CEO Akshaya Moondra said the company is facing serious financial problems. He explained that Vodafone Idea is unable to get loans from banks or raise new investments. If this continues, the company might have to go to the National Company Law Tribunal (NCLT) to start insolvency (bankruptcy) proceedings.

Moondra warned that if the company shuts down or even if there is a short break in its services, it will badly affect the network and spectrum (signal) systems. Most importantly, over 20 crore users who use Vodafone Idea’s services will face problems.

He requested the government to provide some relief, especially with AGR (Adjusted Gross Revenue) dues and spectrum payments. He said that if the government supports the company in time, it will also help over 30,000 people who are working directly or indirectly with Vodafone Idea. In addition, more than 60 lakh shareholders will also benefit.

Vodafone Idea is struggling to survive in India’s competitive telecom industry. The company hopes the government will act quickly to save it from shutting down.