Vodafone Idea (Vi) has accepted the adjusted gross revenue (AGR) dues payments moratorium from the government. The third-largest telco in the country was expected to go ahead with this move as it doesn’t really have a strong cash flow to keep paying AGR dues and also keep investing in its networks.
With this, both Bharti Airtel and Vodafone Idea have accepted the relief measures given by the government. Airtel and Vodafone Idea will enjoy the moratorium on the payments of both spectrum payments and the AGR dues. At the same time, according to an ET Telecom report, Reliance Jio has refused to accept the spectrum and AGR dues payment moratorium.
Vodafone Idea, Airtel Have Still Not Made Their Mind About Giving Equity to Government
Neither of the telecom operators including Vodafone Idea or Bharti Airtel have made their minds about giving equity to the government. In a regulatory filing on Friday, Vodafone Idea said that it is still contemplating what it wants to do about the equity option extended by the government.
For the unaware, as part of the relief measures, the government had given the telecom operators an option of converting the interest dues accrued over the period into equity for the centre. If accepted, this option will ensure that Vodafone Idea will not go out of the market in the long run even if the situation of the company worsens.
Bharti Airtel has also not made a decision related to the equity option yet. Reliance Jio has declined the measures extended from the government because it is not in need of them. The telco would rather keep clearing debt off its books. Jio is in a much better position financially than the other two private telecom operators of the country.
In fact, Jio recently paid the Department of Telecommunications (DoT) Rs 10,792 crore for clearing out its dues on the spectrum bought in the 2016 auctions.
