Vodafone Idea Seeks Relief from Spectrum Payment Guarantees

Vodafone Idea is negotiating with the Department of Telecom to waive bank guarantees required for spectrum payments before 2022. The telecom firm argues for exemption, referencing updated auction rules. Vodafone Idea is burdened with substantial dues, including AGR liabilities, and seeks governmental relief.

Debt-ridden telecom giant Vodafone Idea is currently in talks with the Department of Telecom (DoT) to waive bank guarantees necessary for spectrum payments acquired before 2022. These guarantees, amounting to Rs 24,747 crore, are due by September next year.

The company has formally approached the DoT with detailed proposals to eliminate the bank guarantee requirements. This step aligns with industry demands since the spectrum auction rules of 2022 and 2024 removed such requirements for annual instalments. The DoT is also consulting the finance ministry on potential exemptions for telecom operators.

Vodafone Idea, which recently cleared Rs 16,000 crore of interest obligations on deferred payments by offering equities to the government, is reeling under Rs 2,09,520 crore of total dues, including AGR liabilities. Following the Supreme Court's rejection of its curative petition, the company is actively seeking government relief for its substantial financial obligations.

(With inputs from agencies.)