 "Just a day ahead of the hurriedly called Vodafone Idea (Vi) meeting meant to soothe the nerves of investors amid the company's sliding stock price and a negative narrative around it, the telco announced a $3.6-billion (Rs 30,000 crore) deal with glob")
VIL payment obligation to the government stood at Rs 2,09,520 crore as of June 30, 2024.
Debt-ridden telecom operator Vodafone Idea on Tuesday said it has been in discussion with the Department of Telecom for the waiver of bank guarantee which the company is required to submit a year before the due date for payment of spectrum acquired prior to 2022.
The Department of Telecom (DoT) has asked the telco to submit bank guarantees as an assurance for the spectrum payment of Rs 24,747 crore due in September next year.
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As per norms, bank guarantees need to be submitted at least one year before the payment due date.
“The company has made detailed representations to the DoT and continues to be engaged with DoT for removal of the bank guarantee requirements for spectrum acquired before 2022. This is also an industry ask,” Vodafone Idea (VIL) said in a regulatory filing.
According to sources, the DoT has also reached out to the finance ministry on the issue of giving exemption to telcos from submitting bank guarantees for spectrum payment dues.
VIL has sought relief citing the spectrum auction rules of 2022 and 2024, under which the requirement for providing bank guarantees for the annual instalments has been removed.
VIL has earlier cleared about Rs 16,000 crore interest obligation on the deferred payment and offered the government equities in the company. The government holds around 23 per cent stake in VIL.
VIL has also approached the government seeking relief on Rs 70,000 crore adjusted gross revenue (AGR) dues after the Supreme Court rejected its curative petition for correction in the calculation of the statutory dues and waiver of penalty and interest thereof.
VIL payment obligation to the government stood at Rs 2,09,520 crore as of June 30, 2024, including deferred spectrum payment obligations of Rs 1,39,200 crore and AGR liability of Rs 70,320 crore.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Oct 08 2024 | 7:48 PM IST
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