Cabinet lifeline for Vodafone Idea: AGR dues frozen, payments deferred
Moratorium eases near-term pressure, boosts hopes of debt and equity raise
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New Delhi: Offering a lifeline to struggling debt-laden telecom operator, the government has capped annual payouts to clear past dues at Rs 124 crore over the next six years, easing near-term cash flows, the company said on Friday. Between March 2032 and March 2035, the yearly outgo will be trimmed to Rs 100 crore, Vodafone Idea said in a stock exchange filing citing a communication received from the Department of Telecommunications (DoT). It went on to state that the remaining of the adjusted gross revenue (AGR) dues shall have to be paid in equal installments annually over six years starting March 2036. The government had on December 31 approved a partial moratorium Vodafone Idea’s past dues, freezing them at Rs 87,695 crore that was to be cleared from 2031-32 to 2040-41.
This amount, too, will be reassessed by a committee based on an audit. The payment schedule details sent Vodafone Idea shares higher by 9 per cent in morning trade but stock pared most of its gain by afternoon as analysts remained cautious about upcoming funding needs to support its 5G expansion plans. The stock closed at Rs 11.27, down 2 per cent, on the BSE.
