• Source:JND
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Vodafone-Idea News: The Department of Telecommunications (DoT) has asked debt-ridden telecom company Vodafone Idea to deposit a bank guarantee of Rs 6,090.7 crore or Rs 5,493.2 crore in cash to meet the shortfall in total payment for spectrum purchased in 2015.

The company is, however, in talks with the DoT to pay the dues through equity.

"The aggregate payment made by the company for each of spectrum auctions are greater than the pro-rated use of spectrum other than for the 2015 auction, where there is one-time partial shortfall and DoT has requested either to provide bank guarantee of Rs 60,907 million (Rs 6,090.7 crore) for one year or make a cash payment of Rs 54,932 million (Rs 5,493.2 crore) by March 10, 2025," Vodafone Idea Non-Executive Director Himanshu Kapania said in a note.

As on December 2024, the outstanding debt from banks (including interest accrued but not due) of the group is Rs 2,345.1 crore and deferred payment obligation towards spectrum payable over the years till FY 2044 and AGR (including interest accrued but not due) payable over the years till FY 2031 of the group aggregates to over Rs 2.27 lakh crore.

As of December 2024, the group's outstanding debt from banks (including interest accrued but not due) is Rs. 2,345.1 crore and deferred payment liability for spectrum is payable over the years up to FY 2044 and the group's AGR (including interest accrued but not due) is payable over the years up to FY 2031 of Rs. 2.27 lakh crore.

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"The company continues to be in discussions with DoT and has requested to arrive at a solution for this requirement as envisaged in the telecom reforms package 2021," Kapania said.

Receiving Rs 100 crore from banks by December 31, 2025. This includes Rs 1,200 crore of debt and Rs 1,200 crore of spectrum dues. Vodafone Idea (VIL) has a debt repayment obligation of Rs 2,188.6 crore.

The total amount of spectrum and adjusted gross revenue (AGR) instalments payable in FY 2025 and the shortfall relating to the 2015 spectrum auction is Rs 2.58 lakh crore. Rs 32,723.5 crore.

If there is any shortfall in payment to the government, the company expects to convert it into equity. The government is the single largest shareholder in Vodafone Idea with a 23.15 per cent stake as of December 31, 2024.

VIL's promoters - Aditya Birla Group and Vodafone Group - hold 14.76 per cent and 22.56 per cent stake, respectively, in the company. Vodafone Idea on Tuesday reported its December quarter loss narrowed to Rs 6,609.3 crore as the debt-laden telco achieved a sequential growth in ARPU.

Income from operations for the quarter stood at Rs 11,117.3 crore, up 4 per cent from the same period last year.

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(With Inputs From PTI)

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