Vodafone Idea

Vodafone Idea pays Rs 1,200 crore dues towards license and spectrum says report


Vodafone Idea had earlier informed the DoT of inability to pay the April-June quarter dues and had sought more time

Vodafone Idea

Vodafone Idea


Vodafone Idea has paid the Rs 1,200 crore due towards license fee and spectrum usage charge (SUC) for April-June to the Department of Telecommunications (DoT) an Economic Times report said.

This came after the company missed the July 15 deadline and a further delay could have resulted in the DoT invoking bank guarantees to recover the dues, the report said.

“The payments have started coming in for the circles and the telco did not have much choice, because further delays would have led to invoking of bank guarantees,” said a senior government official.

Moneycontrol could not independently verify the report.

Invoking of bank guarantees is something the cash strapped telco cannot afford. The company had told the Supreme Court (during the AGR hearings) that banks refused to provide guarantees for it, given its debt.

Vodafone Idea had earlier informed the DoT of inability to pay the April-June quarter dues and had sought more time. But the company likely feared being pulled up by the SC for not meeting obligations, especially when its financials and payment abilities already under question, government officials told the paper.

Vodafone Idea had debt of Rs 112,520 crore till March-end, besides the Rs 50,000 crore it still owes DoT towards adjusted gross revenue (AGR) dues. These have eroded its net worth and spiralled the telco towards an existential crisis, the report said.

Vodafone did not respond to queries, it added.

First Published on Aug 5, 2020 09:10 am





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