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Vodafone Idea Planning To Clear Rs 2,400 Crore Govt Due By September: Report

Vodafone Idea Planning To Clear Rs 2,400 Crore Govt Due By September: Report

Debt-ridden telecom operator Vodafone Idea is planning to settle approximately Rs 2,400 crore in government dues by September, reported PTI citing sources privy to the development. Notably, as of June 30, 2023, Vodafone Idea Ltd’s total gross debt amounted to Rs. 21176 lakh crore, which includes deferred spectrum payment obligations of Rs 1.3374 lakh crore and AGR liability of Rs. 0.6686 lakh crore to the government, as per an exchange filing dated August 14, 2023. 

As per the news agency report, the telecom company managed to clear outstanding dues for license fees and spectrum usage charges amounting to around Rs 450 crore for the March quarter of the fiscal year 2022-23. They further plan to pay Rs 2,400 crore which includes a licence fee of around Rs 770 crore by July and Rs 1,680 crore as the first installment for the spectrum it purchased in auctions held last year.

“Vodafone Idea will clear dues for the June 2023 quarter and spectrum installment with applicable interest by September, ” the source told PTI. The report further added that although the company has requested a 30-day extension to settle the spectrum payment, it is also making preparations to fulfill the license fee payment by September.

Also Read: Over 65 Per Cent Of Ongoing Corporate Insolvency Cases Have Extended Beyond 270 Days: IBBI

In case of delayed payment of the spectrum installment, a 15 per cent annual interest rate will apply. The company is expected to pay approximately Rs 1,700 crore for the spectrum installment and about Rs 710 crore for the licence fee dues along with interest. According to another source, the report said the cumulative outstanding amount to be resolved by September surpasses Rs 2,400 crore.

In the first quarter ending June 2023, Vodafone Idea reported a wider loss of Rs 7,840 crore compared to Rs 7,296 crore in the same period last year. However, revenues saw a rise to Rs 10,655 crore, up from Rs 10,410 crore in the prior year. Average revenue per user (ARPU), a crucial profitability metric, increased to Rs 139 for the quarter. This represents an increase from Rs 128 in the same quarter last year. 

According to a report by Mint, the third-largest telecom operator Vodafone Idea is still awaiting funding from its planned Rs 20,000 crore fundraising initiated in 2020, even as discussions with lenders and potential investors continue. The funding is essential for the 5G service rollout in India and to maintain competitiveness against rivals Airtel and Jio, who have already secured a substantial 5G customer base, the report said. 

Doonited Affiliated: Syndicate News Hunt

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