The government has assured Vodafone of level playing field saying that it can carry on its business in India, said Analjit Singh, chairman of Vodafone India after a meeting with Montek Singh Ahluwalia on Thursday. Vodafone faces a possible tax on its 2008 deal,

"He assured us of a level playing field and that India is for reforms and foreign direct investment," said Singh. The two met for more than half an hour but did not discuss tax issue. 

"We came to meet Ahluwalia. We did not discuss Vodafone tax issue as we did not want to embarrass him," Analjit Singh said. 

Besides retrospective tax, Vodafone like other old telecom operators may have to pay an auction discovered price for their existing licences if Department of Telecom''s proposal is accepted. 

"But we were assured we would be given a level playing field and asked to continue on business in India including rural penetration," he said. "Ahluwalia told us to get on with the business as India believes in reforms and FDI and there is nothing to worry." 

According to NDTV Profit, This is not the first time that Vodafone officials are calling on Ahluwalia, but the timing of this meeting is significant as it comes in the backdrop of not just the changes in the finance ministry and the fact that people like Ahluwalia are now expected to play an even bigger role in matters related not just to policies but specific issues of the finance ministry, but also the statement from Prime Minister Manmohan Singh that there are problems on the tax front and these need to be addressed.