Vodafone Idea (Vi) has revived discussions with banks to raise fresh debt, following a Supreme Court verdict that dismissed its plea for a Rs 45,000 crore waiver on penalties and interest linked to its Rs 83,400 crore adjusted gross revenue (AGR) dues. The ruling, delivered on May 19, provides clarity on the telecom operator's regulatory liabilities, enabling lenders to reassess funding proposals that had stalled amid legal uncertainty.
Also Read: Vodafone Idea AGR Case 2025: What Industry Experts are Saying
Lenders Reassess Rs 22,000 Crore Funding
"While banks had not factored in any relief on Vodafone Idea's AGR dues, they have been awaiting greater clarity on the final liability before firming up fresh lending of over Rs 22,000 crore," said a person familiar with the matter, according to an ETTelecom report. "Lenders were closely watching for resolution on the total AGR burden, even as they evaluated the company's proposal to raise bank funding for capex use."
Vodafone Idea said it has been in discussions with lenders for over a year to secure Rs 35,000 crore in bank financing, including Rs 10,000 crore in non-fund-based credit, to support its capital expenditure plans. The company aims to invest Rs 50,000– Rs 55,000 crore through FY28 to expand and modernise its network infrastructure. Between March 2024 and February 2025, it raised approximately Rs 26,000 crore through equity, including Rs 4,000 crore from vendors.
Also Read: Vodafone Idea Approaches Supreme Court After Indian Government Rejects Dues Relief
Equity Infusion and Government Support
CARE Ratings, in a recent note, said that the completion of equity raising in FY25, the potential conversion of spectrum dues into equity by the government, and a reduction in creditor obligations would enhance Vodafone Idea’s prospects of securing fresh bank funding.
Current Liabilities
As of December 31, 2024, the telecom operator's bank debt stood at Rs 2,330 crore, while total government dues related to spectrum and AGR liabilities amounted to Rs 2.15 lakh crore, excluding interest. Under the telecom relief package announced in 2021, substantial government repayments have been deferred until October 2025.
To SC: Vodafone Idea Seeks AGR Relief from Supreme Court, Cites Sector-Wide Crisis
A Vodafone Idea spokesperson declined to comment on the ongoing funding discussions, the report added.
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