Vodafone Idea resumes govt relief talks

Vodafone Idea Ltd has begun discussions with the government to explore a resolution on the telecom operator's substantial dues, barely two weeks after the Supreme Court rejected its plea for a waiver on related payments.

- Jatin Grover

The struggling company is also engaging with banks to secure debt funding for its long-term expansion, chief executive Akshaya Moondra said, adding that banks would want clarity on the dues the telco owes to the government before they agree to lend.

But it is not preventing the discussions from moving forward, Moondra said.

"I see no reason why the government should be constrained in any way to offer relief...," Moondra said on Monday during a call with analysts to discuss Vodafone Idea's March-quarter earnings.

Vodafone Idea is set to incur capital expenditure of ₹5,000-6,000 crore for the first half of 2025-26 to enhance its network and infrastructure. But its next leg of spending would be dependent on funds from banks, Moondra said.

The Supreme Court on 19 May dismissed writ petitions by Vodafone Idea, Bharti Airtel Ltd and Tata Teleservices Ltd seeking relief on interest, penalty, and interest on penalty on adjusted gross revenue (AGR) dues to the government.

Vodafone Idea owes ₹83,400 crore in AGR dues and had sought a waiver on over ₹45,000 crore comprising interest, penalty, and interest on penalty.