According to a DoT official, the telecom company is now in a position to raise funds since the government has converted its dues into equity, giving it a 32% stake in the company. The primary objective is to revitalize the telco’s operations as quickly as possible. However, it is noteworthy that as of the end of Q3 FY23, Vi’s net debt amounted to Rs 2.28 lakh crore, while it only held a cash balance of Rs 160 crore.
Vodafone Idea, one of the leading telecom operators in India, has reportedly received approval from the Department of Telecommunications (DoT) for its plan to defer spectrum usage charges (SUC) and license fees (LF) payments, according to a recent news report.
The move comes as a relief for Vodafone Idea, which has been struggling with mounting debts and losses in recent years. The telecom operator had requested the government to allow it to defer its payments to SUC and LF until its financial situation improved.
The DoT has now reportedly given its nod to the proposal, subject to certain conditions. The telecom operator will have to provide bank guarantees equivalent to the deferred payment amounts and pay an interest of 8% on the deferred amount.
The move is expected to provide Vodafone Idea with some breathing space and allow it to focus on improving its financial performance. The telecom operator had earlier reported a loss of Rs. 25,467 crores for the quarter that ended June 2021.
The telecom industry has been facing several challenges in recent years, including intense competition, regulatory hurdles, and mounting debts. The government has been taking steps to address some of these issues, including the recent introduction of a relief package for the telecom sector.
Vodafone Idea has been one of the major beneficiaries of these measures, with the government providing various incentives and relief measures to help the telecom operator cope with its financial difficulties.
The approval of the SUC and LF payment plan is expected to provide some much-needed respite for Vodafone Idea, which has been struggling to stay afloat in the highly competitive Indian telecom market. The telecom operator will now be able to focus on its core business and work towards improving its financial performance in the months to come.