Vodafone Idea Willing to Pay a Total of Rs 3,500 Crore Before February 21 for AGR Dues

Vodafone Idea has stated how much dues it would be able to pay right now and the amount is less as compared to the total amount

Highlights
  • Vodafone Idea and Airtel had filed for a review petition
  • The DoT has avoided any coercive action till now
  • Vodafone Idea has to pay a total of Rs 53,000 crore

The biggest hurdle for the telecom companies right now happens to be the pending AGR dues which the telecom operators had to pay in the past few days. The telecom companies happen to be in the process of calculating how much dues they have to pay in the coming days. In this new development, as per ET Telecom, Vodafone Idea has said that it is currently capable of paying Rs 2,500 crore for AGR dues. Further, Vodafone Idea would be able to pay an additional Rs 1,000 crore in the coming days before February 21, 2020. The telecom operator has also asked the Department of Telecommunications (DoT) not to take any coercive action. The telecom company also asked the DoT not to invoke any bank guarantees as well because that would hamper the operations of the company.

No Relief for Telecom Operators

It is worth noting that the telecom operators have been pushing hard to get some relief from the Supreme Court in regard to the Adjusted Gross Revenue (AGR) Dues which amount to around Rs 1.3 lakh crore for all the operators. Out of all the telcos, Reliance Jio is the only one which has paid its dues before the January 23 deadline this year. However, the rest of the operators have found themselves to be incapable of paying these dues given the high quantum. The Sunil Bharti Mittal led telecom operator, Bharti Airtel has dues worth Rs 35,500 crore on its head, whereas, Vodafone Idea has dues worth Rs 53,000 crore to pay.

Vodafone Idea Paying Off Dues Using Rights Issue

The telecom operator had also filed a review petition in the Supreme Court which was dismissed by the bench, but then Bharti Airtel and Vodafone Idea, both filed a modification petition in the Supreme Court asking a direct negotiation with the Department of Telecommunications (DoT) on the payment timeline of the AGR dues. Although the telecom companies could not get relief on the amount of the dues, the telcos were seeking if they could get a delayed timeline for paying off these dues.

Vodafone Idea had recently conducted rights issue for Rs 25,000 crore out of which Rs Rs 2,826.1 crore has been set aside for paying off the AGR dues. It is further expected that the telecom company might get a help of Rs 8,000 crore from Vodafone UK to pay off these dues.

Arpit spends his day closely following the telecom and tech industry. A music connoisseur and a night owl, he also takes a deep interest in the Indian technology start-up scene and spends rest of his time spilling poetry and stories on paper.

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Ashish

Why Don’t they shut down and leave, while in case of Tata Steel UK Court did not show any Mercy, why should they expect their company to get special treatment.
3500cr is not even 10%of the actual claim, now they just playing with emotions, they know govt needs an damage control for economy and they are taking full advantage of it.
Nothing and No one can be above supreme Court, court must order immediately shut down just as it did on case of 2G spectrum.

City
Mumbai
Operator
Vodafone & Jio
DTH
Dist Tv
Chetan-bengaluru

With 2500 crore payments, vil has made it’s life span even shorter. Now it will head to nclt even faster than before. Because neither dot or SC will leave them with this small token payment. Even by any bleak chance if sc has change of heart still it’s losses will take it to nclt as service levels detoriates further. Now their cash reserves will be shorter by 3500 crore since promoters refused to infuse more money.

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