Vodafone Idea said in the filing that the board of directors has approved the option of deferring the AGR dues for 4 years with immediate effect as per the DoT letter.
Vodafone Idea: Debt-ridden Vodafone Idea has decided to defer Adjusted Gross Revenue (AGR) of Rs 8837 crore. The company has taken a 4-year moratorium to clear the dues till the financial year 2018-19. The company had received a letter from the Department of Telecommunications on June 15. The company said in a filing that the DoT on June 15 raised the demand for Adjusted Gross Revenue (AGR) for an additional two financial years after 2016-17, which was not covered under the Supreme Court order on statutory due. The telecom company also has the option of converting the interest on the deferred amount into additional equity for the government.
Vodafone Idea opted for Moratorium
Vodafone Idea said in the filing that its board of directors has approved the option of deferring the AGR dues with immediate effect for a period of 4 years as per the DoT letter. The company has got 4 more years to clear the dues. Let us tell you that after March 31, 2026 i.e. after the end of the moratorium, this amount will be repaid in 6 equal installments.
Decision on interest to be taken in 90 days
Vodafone Idea will have to take a decision in 90 days on converting interest into equity on AGR dues of Rs 8837 crore. In September last year, under the Telecom Reform Package, the government had given telecom companies the option of taking a moratorium for 4 years for AGR dues.
who owes how much
According to official data, till the financial year 2018-19, telecom operators owe the government more than Rs 1.65 lakh crore in AGR. Till the financial year 2018-19, Bharti Airtel had AGR dues of Rs 31,280 crore, Vodafone Idea Rs 59,236.63 crore, Reliance Jio Rs 631 crore, BSNL Rs 16,224 crore, MTNL Rs 5,009.1 crore.
Vodafone Idea said in a separate filing that its board has approved raising Rs 436.21 crore from Vodafone Group company Euro Pacific Securities by issuing preferential shares at Rs 10.2 per unit price or warrants at par. Let us tell you that on 22 June i.e. Wednesday, the company had a board meeting and in this board meeting there was discussion about raising funds. In the meeting, the board of the company had approved the raising of funds of Rs 436.21 crore. Promoters Company will issue shares or warrants to Euro Pacific.