Summary:
Vodafone Idea (Vi) plans to repay nearly Rs 490 billion in spectrum dues over the next three years, a move that could strengthen lender confidence as the telecom operator seeks long-pending bank funding. At its 31st AGM, the Aditya Birla Group chairman said the company’s business plan provides for all scheduled spectrum payments, while AGR dues have been deferred to FY35 and outstanding bank loans stand at Rs 2.25 billion. Following the government’s reduction of Vi’s AGR liabilities, the spectrum obligation remains its largest financial burden.
Vodafone Idea Limited (Vi) intends to settle nearly Rs 490 billion in spectrum-related dues over the coming three years, a move that could boost lenders’ confidence as the debt-burdened telecom operator continues efforts to secure long-pending bank financing.
At the company’s 31st annual general meeting, the Aditya Birla Group chairman said Vi’s business plan includes provisions to meet all scheduled spectrum payments during the next three years. He noted that adjusted gross revenue (AGR) payments have been postponed until financial year 2034-35 (FY35), while the company’s current outstanding bank loans are limited to Rs 2.25 billion. The business plan, he added, provides for the complete settlement of spectrum dues within three years.
The commitment is important because, after the government reduced Vi’s AGR liabilities earlier this year, the Rs 490 billion spectrum obligation has emerged as the company’s largest remaining financial burden.
