Telecom operator Vodafone Idea has initiated new discussions with the government following a Supreme Court ruling that was unfavorable in the re-computation of Adjusted Gross Revenue (AGR) dues. CEO Akshaya Moondra stated in an investor call that despite the negative outcome of the curative pleas, the company’s long-term business plans and strategy will remain intact. “For the AGR dues case, we believe this will be the final outcome from the court. The action now falls to the government, and we are in the process of submitting requests regarding AGR dues,” he noted.
The Supreme Court’s decision is seen as a significant setback for telecom companies, particularly for Vodafone Idea, which owes over ₹2,03,430 crore to the government, including ₹1,33,110 crore in deferred spectrum payments and ₹70,320 crore in AGR liabilities.
On Monday, Vodafone Idea’s shares rose by 3% to ₹10.80 on the BSE. The company also reported that the Centre has requested it to submit relevant documents related to its AGR dues. Moondra mentioned that Vodafone Idea is in advanced discussions with lenders to raise approximately ₹35,000 crore and plans to utilize cash flow generated by its operations to clear government dues.
In a notable development, Vodafone Idea announced contracts worth around ₹30,000 crore with Nokia, Ericsson, and Samsung for the supply of 4G and 5G network equipment over the next three years, marking one of the largest deals made by any Indian telecom operator.
