Telecom operator Vodafone Idea will pay Rs 3,500 crore ($490 million) in dues to the government by the end of this week, the company said on Monday.
The shares of the company fell nearly 15 per cent on Tuesday, a day after hopes that Vodafone Idea could outlive the financial squeeze.
“While there is a concern that Vodafone is against the wall, there is a slim hope that they will get through,” Siddhartha Khemka, head of research at Motilal Oswal Financial Services, told NDTV.
A lawyer for the company on Monday said Vodafone Idea would pay Rs 3,500 crore in dues to the government by February 21.
The government had ordered mobile carriers to immediately pay billions of dollars in dues after the Supreme Court threatened the companies and officials with contempt proceedings for failing to implement an earlier ruling.
Vodafone Idea, a venture between the Indian unit of UK’s Vodafone Group Plc and Kumar Mangalam Birla’s Idea Cellular, said its board had approved a payment of Rs 2,500 crore to the government that would be made on Monday itself.
A further Rs 1,000 crore will be paid before the end of the week, the company has said.
The Supreme Court on Monday refused to hear a plea by telecom major Vodafone seeking more time to pay off adjusted gross revenue (AGR) dues.
The company owes roughly $3.9 billion to the government in dues, interest and penalties.
Bharti Airtel paid Rs.10,000 crore to DoT as part payment of its AGR dues. The company said it will make the payment of balance amount after a self-assessment exercise. Tata Teleservices Ltd. paid Rs 2,197 crore, tentatively the entire AGR amount due against it.