The Division of Telecommunications (DoT) is searching for a four- to five-year revival plan from Vodafone Concept (Vi) earlier than granting an exemption on their financial institution assure, CNBC reported citing sources. Earlier than waving off Financial institution Ensures DoT needs to know if the corporate will be capable to meet its obligations in direction of AGR and spectrum dues. The debt-ridden telco mentioned that it has been in dialogue with the DoT for the waiver of financial institution assure which the corporate is required to submit a 12 months earlier than the due date for cost of spectrum acquired earlier than 2022.
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Financial institution Assure Necessities
“We want to submit that the corporate has made detailed representations to the DoT and continues to be engaged with DOT for removing of the financial institution assure necessities for spectrum acquired earlier than 2022. That is additionally an business ask,” Vodafone Concept had mentioned in an earlier submitting on October 8.
The moratorium for spectrum public sale dues for Vi will come to an finish in September subsequent 12 months and financial institution ensures must be submitted at the very least a 12 months prematurely for securing the dues.
The telecom operator was scheduled to submit financial institution ensures in phases for varied auctions, starting on September 20. In whole, Vodafone Concept should present financial institution ensures exceeding Rs 24,700 crore to the federal government within the coming months.
Additionally Learn: Banks Hesitant to Lend to Vodafone Concept Following Supreme Courtroom Ruling: Report
AGR Dues and Authorities Obligations
Moreover, the corporate has additionally approached the federal government for reduction concerning Rs 70,000 crore in adjusted gross income (AGR) dues after the Supreme Courtroom denied its healing petition geared toward correcting the calculation of those statutory dues, in addition to searching for a waiver on penalties and curiosity.
As of June 30, 2024, Vodafone’s cost obligation to the federal government quantities to Rs 2,09,520 crore, which incorporates deferred spectrum funds of Rs 1,39,200 crore and an AGR legal responsibility of Rs 70,300 crore, the report mentioned.