“Vodafone Thought has made its funds up to now however there have been delays in a few of the quarterly dues. However now there’s a massive query on survival,” a senior official informed ET. “They’ve a big chunk of spectrum instalments due in a couple of months as effectively.”
The corporate had written to DoT secretary Anshu Prakash on June 25 requesting one other 12 months – until April 2023 – to pay its dues of Rs 8,292 crore over spectrum bought in auctions. “Now it relies upon if the federal government decides to offer the telcos with moratorium reduction however that’s not a straightforward choice. How lengthy and what number of occasions can the federal government help one operator? And within the interim, how will the operator pay its dues?” stated one other official. The telco additionally must look inwards at its operations to run it extra effectively, given how rivals
and Reliance Jio are managing, he added.
Vodafone Thought did not reply to ET’s queries until press time.
In addition to the spectrum funds, Vodafone Thought – which posted a web loss for the fiscal fourth quarter at Rs 6,985.1 crore – must pay round Rs 9,000 crore to the DoT by March 2022 in direction of its first instalment of adjusted gross income (AGR) dues. This, after the Supreme Court docket on Friday, refused to permit Vodafone Thought to strategy the DoT to right errors claimed by the corporate within the division’s calculation of AGR dues. It had hoped that if the correction was allowed, its AGR dues could be lowered to half.
General, Vodafone Thought owes the federal government Rs 96,270 crore in spectrum cost dues and Rs 58,254 crore in AGR liabilities, of which Rs 7,854 crore has been paid. The telco’s money steadiness as of March-end was Rs 350 crore, and it had admitted to the DoT that its operations weren’t producing ample money.
“They’re discovering it tough to lift funding…this order might delay extra buyers,” the official added.