The finance minister has brought a proposal to convert the Vodafone Idea crore worth of accrued interest on the deferred adjusted gross revenue and related to the equity dues. Now it is the turn of the telecom department court. They have realized the transaction as per the package announced earlier.
The equity conversion has received the finance ministry nod in line with the approved package, and the officials are aware of the developments. The equity conversion has been pending as it was subjected to government confirmation since last January. Vi needs to conclude the long pending Rs10,000 crore external fundraising by the equity as potential investors want clarity on this issue. On the other hand, the carrier is talking to the banks for the next Rs 10,000 crore in debt because they need to invest in their 4G network and roll out 5G effectively. They have to do it to compete with their rivals, including Reliance Jio and Bharti Airtel.
They also need cash of about Rs 15000 crores to pay off the trade payables. It comprises the dues to the other tower companies, network gear vendors, and other suppliers too. By June, Vi’s total debt was about Rs 1.98 lakh crore, along with the deferred spectrum payment dues of Rs 1.16 lakh crore. Apart from this, the debt owed by the banks and financial institutions is Rs 15,200 crore.
- What is the full form of AGR?
Ans. adjusted gross revenue.
- Who is Vi’s main competitor?
Ans. Reliance Jio and Bharti Airtel
- Does Vi profitable in business?
Ans. Currently, it is in huge debt.