Vodafone Idea’s long term viability remains under cloud, despite near-term liquidity support: Report

The USD 200 million fund infusion by British telecom giant Vodafone offers near-term liquidity support to Vodafone Idea, but longer-term viability remains under cloud, Credit Suisse has said. Vodafone has advanced infusion of USD 200 million (about Rs 1,530 crore) in its Indian joint venture with Aditya Birla Group, that is facing a humongous liability of past statutory dues.

The accelerated payment to Vodafone Idea (VIL), which was otherwise due in September 2020, was made under terms of ‘contingent liability mechanism’. The amount, however, is relatively small when seen in the context of over Rs 58,000 crore liability that the cash-strapped Vodafone-Idea Ltd faces just on account of past statutory dues as a fallout of a Supreme Court decision, say experts.