Vodafone Idea (Vi) on Monday said it is actively engaging with the Department of Telecommunications (DoT) to seek relief from its substantial adjusted gross revenue (AGR) dues.
This statement follows the Supreme Court’s dismissal of Vi’s petition requesting a waiver of interest, penalties, and other associated charges on these dues. During a post-Q4 earnings call, Vi CEO Akshaya Moondra said the government should not be constrained in any way from offering relief if it chooses to do so.
The country’s third-largest telecom service provider had approached the apex court seeking relief from government-mandated AGR dues totalling nearly `84,000 crore. The company had previously submitted a similar representation to the government, requesting a waiver of interest, penalty, and interest on penalty, which was not granted. The Supreme Court, however, directed the telco to address the matter with the government, categorizing it as a policy issue falling within the government's purview.
“What the government will do I can’t comment on behalf of the government post judgment. We are continuing to engagement with the government to find the solution with the AGR dues,” said Moondra.
"Our view is that the government can provide relief," Moondra reiterated. "In some ways, if you look at the 2021 reforms package, the government took the initiative, and I see no reason why the government should be constrained in any way from offering the relief it decides to do so.
However, Communications Minister Jyotiraditya Scindia reportedly refused to entertain any plan to provide relief on the AGR front to telecom companies. He also mentioned that Vodafone Idea will not receive any further equity conversion from the government beyond the current 49%, and it's now the company's responsibility to manage its profit and loss and balance sheet. In its quarterly result, Vi reported a consolidated net loss of Rs 7,166.1 crore for the quarter ending March. It is marginal improvement from Rs 7,674.6 crore recorded in the same period last year.
However, losses widened compared to the previous quarter’s Rs 6,609.3 crore. The company’s revenue grew 3.8% year-on-year to Rs 11,013.5 crore, driven by tariff hikes and customer upgrades. The average revenue per user (ARPU) rose to Rs 175. The company also announced plans to raise another Rs. 20,000 crore through a further public offering (FPO), private placement, or other permissible modes. On the fundraising, Moondra mentioned that discussions are ongoing with banks, but banks want clarity on the AGR issue. Vi stated its intention to launch 5G services across 17 telecom circles by August.