CEO Akshaya Moondra of Vodafone Idea (Vi) informed analysts on Monday that the company has started a "new dialogue" with the government about the adjusted gross revenue (AGR) dues problem. Additionally, he stated that the telecom company anticipates finishing the techno-economic assessment (TEC) by an impartial third party and concluding its continuing attempts to get loan capital in the next two months.
A number of curative petitions by telcos, including Vi, requesting a review of the enormous cumulative AGR debts that they owed totaling Rs 1.43 trillion were denied by the Supreme Court last week. Citing "arithmetic errors" in the Department of Telecommunications' computation, the telcos had requested adjustments to the dues.
The loterm business plan and recovery strategy are unchanged, even if a favorable result would have undoubtedly reduced the liability and allowed for quicker deleveraging. As already taken into account in our business forecasts, the decision of the curative petition has no effect or change on cash flows, according to Moondra. He stated that there was no consideration of any prospective advantage in the AGR subject in the loterm strategy.
According to Moondra, the government is by far the biggest shareholder in Vi, owning 23% of the company's ownership. DoT evaluated Vi's AGR dues at an astounding Rs 58,254 crore, although Vi had valued them at Rs 21,533 crore. The telecom company has only paid out Rs 7,900 crore thus far.
Vi's total debt at the end of the first quarter of FY25 (April–June) was Rs 2.09 trillion. This comprises the government's adjusted gross revenue (AGR) liabilities of Rs 70,320 crore and its postponed spectrum payment commitments of Rs 1.39 trillion. Vi is required to pay the government Rs 12,000 crore by March 2026, including principle and interest, after the payment moratorium expires in October 2025. For five years, from FY27 to FY31, it must also pay the government Rs 43,000 crore a year.
