The Department of Telecommunications (DoT) is seeking a four- to five-year revival plan from Vodafone Idea (Vi) before granting an exemption on their bank guarantee, CNBC reported citing sources. Before waving off Bank Guarantees DoT wants to know if the company will be able to meet its obligations towards AGR and spectrum dues. The debt-ridden telco said that it has been in discussion with the DoT for the waiver of bank guarantee which the company is required to submit a year before the due date for payment of spectrum acquired before 2022.
Also Read: Vodafone Idea Receives DoT Notice for Failing to Submit Bank Guarantees: Report
Bank Guarantee Requirements
"We would like to submit that the company has made detailed representations to the DoT and continues to be engaged with DOT for removal of the bank guarantee requirements for spectrum acquired before 2022. This is also an industry ask," Vodafone Idea had said in an earlier filing on October 8.
The moratorium for spectrum auction dues for Vi will come to an end in September next year and bank guarantees have to be submitted at least a year in advance for securing the dues.
The telecom operator was scheduled to submit bank guarantees in phases for various auctions, beginning on September 20. In total, Vodafone Idea must provide bank guarantees exceeding Rs 24,700 crore to the government in the coming months.
Also Read: Banks Hesitant to Lend to Vodafone Idea Following Supreme Court Ruling: Report
AGR Dues and Government Obligations
Additionally, the company has also approached the government for relief regarding Rs 70,000 crore in adjusted gross revenue (AGR) dues after the Supreme Court denied its curative petition aimed at correcting the calculation of these statutory dues, as well as seeking a waiver on penalties and interest.
As of June 30, 2024, Vodafone's payment obligation to the government amounts to Rs 2,09,520 crore, which includes deferred spectrum payments of Rs 1,39,200 crore and an AGR liability of Rs 70,300 crore, the report said.
