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Vi Gets 5-Year Interest-Free Moratorium on Dues
15 Dec
Summary
- Vodafone Idea may receive a five-year interest-free moratorium on ₹83,000 crore AGR dues.
- A committee will reassess Vi's liabilities, potentially halving the outstanding amount.
- This relief package aims to help Vodafone Idea secure fresh capital for expansion.
The Indian government is reportedly preparing to offer Vodafone Idea (Vi) a substantial financial reprieve, including an interest-free moratorium of four to five years on its substantial pending dues. This measure, amounting to over ₹83,000 crore linked to adjusted gross revenue (AGR), aims to provide immediate relief to the cash-strapped telecom operator.
A committee, to be headed by a secretary-level official, will be formed to review Vi's liabilities. This committee will consider input from both the telecom department and Vi before making a final determination on the payable amount, which is anticipated to be significantly reduced, potentially by half.
This proposed relief package is crucial for Vodafone Idea, which has been struggling to meet its financial obligations. The company's ability to secure fresh capital, including a planned ₹25,000 crore equity raise, is seen as dependent on resolving its AGR dues. Such a resolution could also pave the way for potential investments from entities like Tillman Global Holdings.
