Telecom operator Vodafone Idea has begun fresh talks with the government following an unfavorable Supreme Court ruling on the re-computation of its Adjusted Gross Revenue (AGR) dues. The company's CEO, Akshaya Moondra, revealed during an investor call on Monday that they are exploring potential remedies with the authorities.
“We have started fresh discussions with the government regarding possible solutions,” Moondra said, while stressing that the company's long-term business plans and strategy will remain intact despite the negative outcome of the curative petitions.
Moondra added, “We believe this ruling is the final decision from the court on the AGR case. Moving forward, the responsibility to address the AGR dues rests with the government. We are in the process of submitting requests to the government for resolution.”
The Supreme Court's decision is seen as a significant setback for Vodafone Idea, particularly as the company faces massive dues to the government. The telecom operator owes approximately Rs 2,03,430 crore as of March 31, 2024, which includes Rs 1,33,110 crore in deferred spectrum payments and Rs 70,320 crore in AGR liabilities.
Vodafone Idea has also confirmed that the government has asked it to submit relevant documents for review related to its request.
A joint venture between the UK's Vodafone Plc and India's Aditya Birla Group, Vodafone Idea has been struggling with a substantial financial burden. The company had hoped for court relief to ease its repayment obligations, but now faces the challenge of overcoming further financial pressures.
In addition, the rejection of the AGR curative plea has raised concerns about the company's ongoing efforts to raise Rs 25,000 crore through debt. Despite the unfavorable ruling, reports suggest that Vodafone Idea's discussions with lenders and vendors remain positive. According to sources, the Supreme Court's decision was not factored into the business plan presented to lenders, and techno-economic assessments from lenders were optimistic, unaffected by the court’s ruling.
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