AGR dues: Vodafone Idea's annual installment pegged at Rs 7,853 crore over 10 years
Vodafone Idea, which owes more than Rs 50,000 crore in AGR related dues, has paid Rs 7,854 crore in over last few months
- Sep 1, 2020,
- Updated Sep 1, 2020 3:39 PM IST
The Supreme Court on Tuesday granted 10-year window to telecom companies like Vodafone Idea, Bharti Airtel and Tata Teleservices for paying the Adjusted Gross Revenue (AGR) related dues to the Department of Telecommunications (DoT). A bench headed by Justice Arun Mishra has asked telcos to pay 10 per cent of the AGR-related dues by March 31, 2021. It further stated that the companies have to make the payment by February 7 every year, while failure to pay installments would incur penalty, interest and contempt of court.
According to SBICap Securities, debt-laden Vodafone Idea, which owes more than Rs 50,000 crore in AGR related dues, will have to pay annual AGR installments at Rs 7,853 crore for ten years. Given the fragile financial health of Vodafone Idea, it is going to be difficult for the operator to make 10 per cent upfront payment or annual installments over 10 years.
Of the total AGR dues, the telecom major has made a payment of Rs 7,854 crore. As of June, it had a cash holding of about Rs 3,450 crore, while its gross debt (excluding lease liabilities) stood at Rs 1,18,940 crore, including deferred spectrum charges of Rs 92,270 crore.
The Supreme Court on Tuesday granted 10-year window to telecom companies like Vodafone Idea, Bharti Airtel and Tata Teleservices for paying the Adjusted Gross Revenue (AGR) related dues to the Department of Telecommunications (DoT). A bench headed by Justice Arun Mishra has asked telcos to pay 10 per cent of the AGR-related dues by March 31, 2021. It further stated that the companies have to make the payment by February 7 every year, while failure to pay installments would incur penalty, interest and contempt of court.
According to SBICap Securities, debt-laden Vodafone Idea, which owes more than Rs 50,000 crore in AGR related dues, will have to pay annual AGR installments at Rs 7,853 crore for ten years. Given the fragile financial health of Vodafone Idea, it is going to be difficult for the operator to make 10 per cent upfront payment or annual installments over 10 years.
Of the total AGR dues, the telecom major has made a payment of Rs 7,854 crore. As of June, it had a cash holding of about Rs 3,450 crore, while its gross debt (excluding lease liabilities) stood at Rs 1,18,940 crore, including deferred spectrum charges of Rs 92,270 crore.