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DoT looking into Voda-Idea's plea on dues re-computation: Telecom secy

Earlier this month, the Telecom Ministry granted conditional approval to the long-pending merger of Vodafone India and Idea Cellular

Vodafone  |  Broadband  |  Pti

Press Trust of India  |  New Delhi 

Telecom Secretary Aruna Sundararajan
Telecom Secretary Aruna Sundararajan

and have cited "some difference of opinion" on the way dues have been computed by the Telecom Department, which is "looking into" the issue, Telecom Secretary Aruna Sundararajan said on Wednesday.

"They (the companies) have come back to us saying there is some difference of opinion in the calculation of dues. So DoT is looking into it and we have not taken a view yet," Sundararajan said on the sidelines of a event organised by CUTS International.

The Department's calculation pertains to bank guarantees and cash payment sought from and India. The two companies have made a request for re-calculation.

Earlier this month, the Telecom Ministry granted conditional approval to the long-pending merger of India and that will create the country's largest mobile services operator dislodging from its current pole position.

The department has asked for a payment of Rs 39.26 billion in cash pertaining to one-time spectrum charge of Vodafone. The amount can be paid either by Idea or Vodafone. The DoT has also asked Idea Cellular to furnish a combined bank guarantee of Rs 33.42 billion.

The combined operations of Idea and Vodafone will create the country's largest telecom operator worth over USD 23 billion (or over Rs 1.5 trillion), with a 35 per cent market share and a subscriber base of around 430 million.

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First Published: Wed, July 18 2018. 20:00 IST