Vodafone relief plan with PMO

The Prime Minister’s Office (PMO) has received a proposal from the telecom department to steady Vodafone Idea Ltd (Vi), said two officials aware of the matter, as the carrier has repeatedly cited upcoming payments against pending dues as a threat to its survival.

- Jatin Grover

In an informal note to the PMO last month, the Department of Telecommunications (DoT) has proposed “multiple relief options”, including a further two-year pause on paying the statutory dues under moratorium currently, one of the two officials quoted said on the condition of anonymity. The PMO will take the final decision on whether any relief measures need to be extended, the person added.

Struggling Vi owes about ₹83,400 crore in adjusted gross revenue (AGR) dues to the government, with annual payments of ₹18,000 crore beginning next March. Vi has previously said that banks are unwilling to lend more given the hefty dues, and that it will be unable to survive beyond a year without such funding. Overall, its total dues to the government stand at around ₹2 trillion, including penalty and interest.