Vodafone Idea Seeks Government Relief After Supreme Court Setback

Vodafone Idea has requested government relief for its Rs 70,000 crore AGR dues after the Supreme Court denied its curative petition. Despite this setback, the company remains committed to its long-term business plan, including a Rs 30,000-crore contract for telecom gear and a network expansion funded through Rs 25,000 crore in debt from banks.

Debt-ridden Vodafone Idea has sought government relief on Rs 70,000 crore of adjusted gross revenue (AGR) dues after the Supreme Court rejected its petition for corrections and waiver of penalties, said a top company official.

During an investor call about a Rs 30,000-crore contract for 4G and 5G telecom equipment, VIL Chairman Ravinder Takkar revealed that the company has been in discussions with senior government officials both before and after the court's decision.

''The government has asked us to propose a comprehensive mechanism to address this challenge,'' Takkar stated.

The government owns a 23.2 percent stake in VIL, while promoters Aditya Birla Group and Vodafone hold 37.3 percent.

Takkar affirmed a clear understanding with the government that VIL shouldn't have to pay for calculation errors.

VIL's total payment obligation to the government stands at Rs 2,09,520 crore as of June 30, 2024.

VIL CEO Akshaya Moondra noted the Supreme Court dismissed their curative petition, not addressing the merits of the case.

He reassured investors that their long-term business plan remains unaffected, despite the setback.

The company has submitted growth plans to banks for raising additional debt, expecting to secure Rs 25,000 crore in funding within 7-8 weeks for network expansion.

VIL recently awarded a Rs 30,000-crore contract to Nokia, Ericsson, and Samsung. The equipment supply should begin by next quarter's end, with substantial deployment by the fiscal year's close.

(With inputs from agencies.)