Vodafone Group made an accelerated payment of $200 million to Vodafone Idea to support its India joint venture’s operations as it faces increased tax liabilities and the effects of the Covid-19 (coronavirus) pandemic.
The payment, under the terms of a contingent liability agreement with Vodafone Idea, wasn’t due until September this year.
As part of the original deal to merge Vodafone India and Idea Cellular in August 2018, a $1.2 billion sum was set aside by the parties to cover historical liabilities. In a statement last week, Vodafone noted any further payment made would be from this fund and not new money.
Vodafone CEO Nick Read has gone on record numerous times to assure shareholders no further funds would be spent on the JV.
Earlier in the week, Vodafone Idea made a payment of about INR13 billion ($171 million) in licence and spectrum fees for the first quarter of 2020, The Economic Times reported.
The operator claims it owes INR215 billion in unpaid adjusted gross revenue dues, based on a self-assessment of its liabilities, compared with the INR530 billion the Department of Telecommunications ordered it to pay. The operator said it paid the full principal amount owed of INR68.54 billion.Subscribe to our daily newsletter Back