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Vodafone Group has provided $200 million to Vodafone Idea, which was due in September, to help the latter manage operations and support about 300 million subscribers.
The funds were provided under the terms of the contingent liability mechanism (CLM) with Vodafone Idea, UK-based Vodafone Group said in a statement.
Under the terms of the CLM, Vodafone Group is obliged to make payments to Vodafone Idea where amounts paid pursuant to the contingent liabilities of Vodafone India exceed those of Idea Cellular. The CLM took effect at completion of the merger of Vodafone India and Idea Cellular in August 2018.
The funding would also be provided to thousands of Vodafone Idea employees for health measures taken as a result of the Covid-19 pandemic.
Vodafone Idea also said it made payments to the Government in relation to its Adjusted Gross Revenue liabilities.
As part of the agreement to combine its subsidiary Vodafone India with Idea Cellular, which was completed on August 31, 2018, Vodafone Group, Aditya Birla Group and Idea had agreed to reimburse each other on certain identified pre-merger liabilities.
Vodafone Group’s potential exposure under this mechanism is limited to ₹8,400 crore, it said.
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