The Division of Telecommunications (DoT) is in search of 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 have the ability to meet its obligations in direction of AGR and spectrum dues. The debt-ridden telco stated that it has been in dialogue with the DoT for the waiver of financial institution assure which the corporate is required to submit a yr earlier than the due date for fee of spectrum acquired earlier than 2022.
Additionally Learn: Vodafone Concept Receives DoT Discover for Failing to Submit Financial institution Ensures: Report
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 elimination of the financial institution assure necessities for spectrum acquired earlier than 2022. That is additionally an trade ask,” Vodafone Concept had stated in an earlier submitting on October 8.
The moratorium for spectrum public sale dues for Vi will come to an finish in September subsequent yr and financial institution ensures should be submitted at the very least a yr 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 relating to 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 in search of a waiver on penalties and curiosity.
As of June 30, 2024, Vodafone’s fee 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 stated.
