New Delhi: Business magnate Mukesh Ambani has opposed the government’s decision to provide any sort of financial aid to rival telecom operators namely Bharti Airtel and Vodafone, stated a report. Ambani’s Reliance Jio Infocomm Ltd added that its rival companies already have enough recourse to clear the dues amounting to $7 billion.
It must be noted that the Supreme court had in October 2019 ordered Bharti Airtel and Vodafone Idea to clear a total outstanding amount of Rs 49,990 crore. Thus, in an official statement, dated November 1, issued on Sunday, Reliance Jio noted that while Bharti Airtel can sell its assets to raise its Rs 40,000 crore dues, Vodafone Idea can also easily clear its dues with its resources, reported Bloomberg.
The official statement was a letter written by the Reliance Jio’s president for regulatory affairs Kapoor Singh Guliani to the telecom minister of India. This letter was issued after a government panel decided to look into the demands of Sunil Mitaal’s Bharti Airtel and Kumar Mangalam Birla’s Vodafone Idea. These two telecom operators had demanded a reduction in the spectrum usage levies and the Universal Service Obligation Fund charge, stated a report.
While Vodafone Idea witnessed net losses for 11 straight quarters, Bharti witnessed its first loss in the June quarter, stated Bloomberg. Kapoor Singh Guliani stated that Airtel can easily liquidate by issuing15-20 per cent new equity or selling a portion of its assets. Besides, the company has over 1,63,000 mobile-phone towers across the nation, added Guliani. He was quoted by Bloomberg as saying that as far as Vodafone Idea is concerned, “ there is no dearth of sources to pay” their dues. Guliani added that Vodafone also has a stake in Indus Towers.