InvestorQ : How should the government act if Vodafone becomes unviable in India?
indhumathi Sayani made post

How should the government act if Vodafone becomes unviable in India?

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10 months ago
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Vodafone is in a mess. It has reported net losses of Rs.118,000 crore in last 2 fiscal years and its net worth is negative by Rs.36,000 crore. Vodafone owes Rs.145,000 crore to banks and Rs.60,000 crore to the government. Vodafone poses a potent systemic risk for the Indian markets in general and Indian banks in particular.

It is time for a Plan-B to be kept ready. If Vodafone decides to call it a day in India, it will leave a big hole in the Indian economy in the form of reduced government revenues, compression in jobs and a huge default for the banks. That is best avoided.

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