Vodafone Idea is facing gloomy days in the Indian market due to heavy losses, amortisation, finance costs and more. To relieve the pressure from its subscribers and interest holders, the Managing Director (MD) of the telco, Ravinder Takkar stated that the company is planning to raise funds in the coming period. Also, Vodafone Idea is not inclining towards any plan B. Takkar expressed his confidence over the AGR dues reduction.
He feels that the AGR dues of Vodafone Idea will also be reduced shortly. One of the biggest challenges in the road of Vodafone Idea’s hassle-free journey in the Indian telecom sector is the low tariff plans. The telecom giant cannot increase the tariff plans unilaterally due to intense competition in the market. Also, the lack of floor price is another hurdle that is slashing the growth of financially burdened telco.
Vodafone Idea has to Pay Rs 9,000 Crore AGR Dues in March 2022
Takkar was hinting towards a massive Rs 25,000 crore fundraising deal which the telco announced last month. However, even after 6 months of discussion, the deal was in the planning stage, which worried the potential investors. Talking about the AGR dues, Vodafone Idea has paid Rs 7,854 crore to DoT. Also, the telco has to pay nearly Rs 9,000 crores in March 2022.
Vodafone Idea Expects the Government to Slash AGR Dues Nearly 50%
Tracing back to last week’s development, Vodafone Idea urged the government to slash the AGR dues. The telco highlighted the calculation errors made by the Department of Telecommunications (DoT). The calculations made by DoT does not shed light on the previous payments made by Vodafone Idea. Also, the double-counting of revenue and deductions not granted on roaming charges are some points which the telco considered while filing the modification plea in the Supreme Court.
Vodafone Idea has shared the financial figures and revealed a loss of Rs 6,985.1 for the quarter ended March. The subscriber erosion, high depreciation, one-time expenses continue to be the hurdle for Vodafone Idea. Even though the telco has been under heavy financial distress, the funding and expansion plans continue to be the guiding light.