According to a Moneycontrol report, there is a potential government intervention for the financially strained telecom operator.
Sources familiar with the development, as reported by Moneycontrol, indicated that the Department of Telecommunication (DoT) has submitted an informal communication to the PMO, outlining several bailout measures for consideration.
The proposed relief framework encompasses multiple options, including an extension of the current moratorium on statutory dues payment for another two-year period. Under the existing arrangement, Vodafone Idea has been granted temporary relief from paying these obligations.
The DoT’s recommendations also feature enhanced flexibility in repayment terms, including extended timelines for clearing outstanding dues, reduced annual installments, and potential waivers on penalty charges and interest components related to Adjusted Gross Revenue (AGR) payments, as per the report.
Vodafone Idea’s financial predicament has been mounting, with the company carrying approximately Rs 83,400 crore in AGR-related dues. The telecom operator faces substantial annual payment obligations of nearly Rs 18,000 crore starting March 2025, while its total government dues, including penalties and interest, amount to around Rs 2 trillion, Moneycontrol reported.The company has consistently highlighted its precarious financial position, with management reiterating that survival hinges on securing adequate funding support. CEO Akshaya Moondra had previously mentioned during the June quarter earnings call on August 18 that the company is actively exploring alternative funding mechanisms for its capital expenditure requirements, as conventional banking channels remain largely inaccessible due to ongoing uncertainties surrounding AGR dues resolution.The telecom operator’s quest for financial stability continues as stakeholders await the PMO’s decision on the proposed relief measures, which could prove crucial for the company’s long-term viability in India’s competitive telecommunications market.
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