Vodafone Idea Plans To Clear About Rs 2,400 Cr Dues By September

Debt-ridden telecom operator Vodafone Idea plans to clear about Rs 2,400 crore of dues to the government by September, sources privy to the development said.

The company recently cleared pending dues of licence fees and spectrum usage charges of about Rs 450 crore for the March quarter of 2022-23, a source told PTI.

"Vodafone Idea will clear dues for the June 2023 quarter and spectrum instalment with applicable interest by September, " the source said.

Vodafone Idea (VIL) was required to pay a licence fee of around Rs 770 crore by July and Rs 1,680 crore as the first instalment for the spectrum it purchased in auctions held last year.

While the company has sought 30 days to clear the spectrum payment, the company is also gearing up to clear the licence fee payment by September.

"Dues on late payment of spectrum instalment will attract 15 per cent interest rate on annual basis. The company will have to pay around Rs 1,700 crore for spectrum instalment and around Rs 710 crore for licence fees with interest. The total amount pending to be cleared by September is over Rs 2,400 crore," another source said.

VIL has received funding assurance of up to Rs 2,000 crore from a promoter group entity in the event of any fund requirement for meeting its impending payment obligations.

VIL Chief Executive Officer Akshaya Moondra during the company's earning call had said that the company's discussion with investors and banks has progressed well and expects to close funding in the coming quarter.

"We are making good progress and expect to conclude these discussions in the coming quarter. That is as far as the equity funding is concerned. As far as debt funding is concerned, we have been engaged with a consortium of banks for a long time. Generally, their ask is that equity also needs to be tied up...we expect to conclude these funding arrangements in the coming quarter," Moondra had said.

VIL total gross debt (excluding lease liabilities and including interest accrued but not due) as of June 30, 2023, stood at Rs 2,11,760 crore, comprising deferred spectrum payment obligations of Rs 1,33,740 crore, and AGR liability of Rs 66,860 crore that are due to the government.