The government holds a 23.2 percent stake in Vodafone Idea Limited.
Telecom company Vodafone Idea Limited has approached the government for relief on Adjusted Gross Revenue (AGR) dues. A senior official of the debt-ridden company said on Monday that the Supreme Court has rejected its curative petition seeking correction in the calculation of statutory dues, waiver of penalty and interest. According to PTI news, the company’s AGR dues are around Rs 70,000 crore.
Talks going on with senior government officials
According to the report, during the company’s investor call on the Rs 30,000 crore deal awarded to Nokia, Ericsson and Samsung for supply of 4G and 5G telecom gear, VIL Chairman Ravinder Takkar said that the company has been in discussions with senior government officials both before and after the court’s decision. Takkar said that while it was expected that the courts would obviously consider the petition, the fact that the court has not done so means that the action and responsibility, in some ways, rests entirely with the government. The government has since asked us to formulate a comprehensive view on what we can put in place and the right mechanisms to deal with this challenge.
who has how much share
The government holds a 23.2 percent stake in Vodafone Idea Limited, while the promoters – Aditya Birla Group and Vodafone – hold a 37.3 percent stake in the company. Takkar said there is a clear understanding with the government that Vodafone Idea Limited should not pay anything that is the result of a calculation error. We are in the process of putting together those requests. We will re-engage with the government on those requests in the coming days. We look forward to further discussions with the government and look forward to working closely with them and finding a solution to this challenge, Takkar said.
Vodafone Idea’s payment obligation
Vodafone Idea Limited’s payment obligation to the government as of June 30, 2024 was Rs 2,09,520 crore, which includes deferred spectrum payment obligation of Rs 1,39,200 crore and AGR liability of Rs 70,320 crore. Vodafone Idea Limited CEO Akshay Mundra said the Supreme Court has dismissed the curative petition filed by the company to correct the errors and demands and waive penalty and interest. He said that according to the Supreme Court, the petition does not meet the criteria prescribed for accepting curative petitions.
A big deal has been done for the supply of the device
VIL has awarded contracts worth about Rs 30,000 crore to Nokia, Ericsson and Samsung for supplying 4G and 5G telecom network equipment for three years. The company has earmarked Rs 50,000-55,000 crore for network expansion. VIL said it will initially fund the capital expenditure from the recently raised Rs 24,000 crore and is in talks with banks for the rest.
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