Vodafone Idea's AGR Dues Relief Package
Vodafone Idea (Vi) has been granted a significant relief package allowing a 10-year extension to settle over 95% of its adjusted gross revenue (AGR) dues. This package aims to aid the financially struggling telecom company.
AGR Dues and Reassessment
- The government has frozen Vi's AGR dues at ₹87,695 crore as of December 31.
- A committee will reassess these dues within three to four months.
- Post reassessment, the payable amount will be adjusted, with payments spread from FY36 to FY41.
- The company initially approached the Supreme Court seeking a repayment timeline until FY41.
Payment Schedule
- From the current fiscal until FY31, Vi will pay ₹114 crore annually for six years.
- From FY32 to FY35, the company will pay ₹100 crore annually.
- There is no moratorium, but there is a structured payment plan.
Moratorium and Dues Payment
- A five-year moratorium applies to frozen dues, requiring reassessment.
- Vi must settle ₹700-800 crore for FY18 and FY19 by FY31 in ₹114 crore annual installments.
- The Supreme Court's 2019 order accounted for dues until FY17.
- The Department of Telecommunications (DoT) assessed FY18 and FY19 dues based on this order.
Shareholder Impact and Financial Outlook
- Vi's shares rose after clarity on the relief package.
- The government holds a 49% stake, with Aditya Birla Group and Vodafone Group Plc holding 9.50% and 16.07%, respectively.
- By FY36, most spectrum dues would be cleared, improving Vi's financial health.
