Vodafone Idea’s Talks with Lenders and Vendors Unaffected by SC Ruling on AGR Dues: Report

Vodafone Idea's Talks With Lenders and Vendors on Track Despite AGR Setback: Report
Vodafone Idea (Vi) is reportedly on track with its talks with lenders and vendors, despite the Supreme Court’s recent rejection of its curative petition related to adjusted gross revenue (AGR) dues. According to sources familiar with the matter, the outcome of the curative petition was not included in the company’s business plans or discussions with lenders, as reported by ET on Friday.

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Curative Petition Impact Minimal

A person familiar with the matter, quoted in the report, said that the curative petition was not factored into any business plan presented to the lenders. Even the techno-economic assessment conducted by the lenders is favourable and does not mention the curative ruling at all.

“We are in active discussions with multiple banks. A key milestone in this process was the updating of the independent techno-economic evaluation initiated by the banks, which was completed recently,” a Vodafone Idea (Vi) spokesperson said in response to ET’s queries.

4G and 5G Infrastructure Deals

According to the report, the company also added that its equipment deals with vendors for the enhancement and rollout of 4G and 5G network infrastructure are now in the final stages of discussions and that Vi would close the agreements soon.

These comments come amid concerns that the telco could face significant challenges in raising Rs 25,000 crore via debt after the Supreme Court rejected telecom operators’ curative plea on AGR dues, which has left Vi facing massive statutory payouts from the next fiscal year.

Also Read: Vodafone Idea Enhances 4G Capacity by 150 Percent in Bihar and Jharkhand

Government’s Potential Stake Conversion

“The government could convert part of the statutory dues into a stake in the company, as it has done in the past as part of a relief package for the telecom sector,” one of the people cited earlier stated, the report said.