Is Vodafone-Idea going to face difficulty for AGR dues?
Is Vodafone-Idea going to face difficulty for AGR dues?
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Vodafone Idea, the world's leading telecom company, may find it difficult to pay incremental upfront dues of over ₹ 50 billion in AGR dues. Brokerage, Credit Suisse said this in their report. A report states that after paying the ₹ 69 billion AGR dues, it is estimated that Vodafone Idea will have ₹ 60 billion in cash left by March 2020, as there was no incremental CAPEX in the fourth quarter of FY 2020.

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In its statement, Credit Suisse said that it would be difficult for VIL to pay incremental dues of more than ₹ 50 billion due to Vodafone India Limited (VIL) not having access to incremental debt funds. On the other hand, there will be no problem of incremental advance payment on payment of 48% of the arrears already. Bharti Airtel will not have any problem in incremental upfront payment.

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The report said that the situation of VIL cash flow will be challenging after FY22. According to the report, VIL can manage its liquidity problem by FY22 on a two-year moratorium. It states that the company may find it challenging to give separate AGR due from 2022 onwards. The Department of Telecommunications has sought some time to respond to the affidavits filed by private communication companies like Bharti Airtel and Vodafone Idea Ltd. for payment of dues related to AGR. In the ongoing hearing in the Supreme Court on Thursday, the court has asked Idea and Vodafone to show the balance seat. The court said that due to the Corona epidemic, the government needs money.

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