NEW DELHI: Offering a lifeline to struggling debt-laden Vodafone Idea, govt has capped annual payouts to clear past dues at Rs 124 crore over the next six years, easing near-term cash flows, the company said on Friday.Between March 2032 and March 2035, the yearly outgo will be trimmed to Rs 100 crore, Vodafone Idea said in a stock exchange filing, citing a communication received from the Department of Telecommunications (DoT).It went on to state that the remaining of the adjusted gross revenue (AGR) dues shall have to be paid in equal installments annually over six years starting March 2036.
Govt had on Dec 31 approved a partial moratorium on Vodafone Idea’s past dues, freezing them at Rs 87,695 crore that was to be cleared from 2031-32 to 204041. This amount, too, will be reassessed by a committee based on an audit.The payment schedule details sent Vodafone Idea shares higher by 9% in morning trade but stock pared most of its gain by afternoon as analysts remained cautious about upcoming funding needs to support its 5G expansion plans. The stock closed at Rs 11.27, down 2%, on the BSE.The relief measures approved by the Union Cabinet on Dec 31 were aimed at protecting the interest of govt (which has about 48.9% stake in the telco), enable orderly payment of dues to the Centre by way of spectrum auction charges and AGR dues, ensure competition in the sector and safeguard the interests of 20 crore consumers of Vodafone Idea.AGR dues refer to payments owed by telecom companies to govt based on adjusted gross revenue (AGR). It is the revenue on which telecom operators must pay licence fees and spectrum usage charges. It is defined to include all revenues, even nontelecom income (like interest, rent, asset sales).
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