By Adria Calatayud

Vodafone Group PLC said Wednesday that it has accelerated a payment of $200 million to Indian telecom operator Vodafone Idea Ltd. in order to provide it with liquidity to manage its operations during the coronavirus pandemic.

The U.K. telecommunications group said the payment was due in September as part of a contingent liability mechanism between the two companies.

Following a decision by India's Supreme Court, the country's telecoms operators became liable for license fees, penalties and interest dating back over 14 years and Vodafone Idea has made payments to the Indian government in relation to its liabilities, Vodafone said.

Under the agreement, 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. Vodafone Idea was created through the merger of Vodafone's Indian operations and Idea Cellular in 2018.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

April 22, 2020 08:29 ET (12:29 GMT)

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