Vodafone Idea pays an additional $133m towards its AGR dues

Published: 19 July 2020 - midnight

Vodafone Idea has paid an additional $133 million to India’s Department of Telecoms, towards its outstanding Adjusted Growth Revenue (AGR) dues, bringing its total payments to $1.048 billion.

“In line with the above, the company has on July 17 paid a further sum of Rs 1,000 crore to the department of telecom towards the AGR dues. The company had earlier deposited Rs 6,854 crore in three tranches,” Vodafone Idea said in a regulatory filing.

India’s Department of Telecoms maintains that Vodafone Idea may owe as much as $7.75 billion (58,000 crore rupees) in unpaid dues, late payment fees and other charges.

India’s Supreme Court is set to meet on the 20th of July to assess outstanding dues from its landmark ruling on AGR payments last year.

Vodafone Idea became India’s biggest telco when its parent companies, Vodafone India and Idea Cellular, merged on the 31st of August 2018. However, since then the company has haemorrhaged subscribers, relinquishing top spot to Reliance Jio earlier this year.

The company has struggled under a mounting debt pile and Vodafone Group’s CEO Nick Read has said on numerous occasions that the Group is not prepared to infuse any more capital into the JV, placing the onus squarely on the shoulders of the Indian Government to a deal to save the 300 million subscriber strong telco.

In April this year, Vodafone Group made an emergency transfer of around $200 million to enable Vodafone Idea to pay its creditors and remain solvent.

Click here to add your comment

Please add your comment below
Your email address will not be published