The telecom major has filed a petition to quash the Department of Telecommunications’ fresh demand of Rs 5,606 crore for the financial year 2016–17 under the adjusted gross revenue (AGR) framework.
Of the total dues, Rs 2,774 crore pertains to the post-merger Vodafone Idea entity, while Rs 5,675 crore relates to liabilities of the pre-merger Vodafone Group, the company stated.
Vodafone Idea has sought reconciliation of the dues, citing duplication of figures and inconsistencies stemming from earlier financial account finalisations. The Department of Telecom, on the other hand, has stated that the demand is not a reassessment but results from adjustments made during the closure of pending accounts.
The outcome of the hearing holds significant implications for Vodafone Idea, which is in active discussions with lenders to secure additional funding. During the company’s June quarter earnings call, CEO Akshaya Moondra had emphasised that clarity on the AGR matter was a key factor delaying funding decisions.
Moondra added that the company has been continuously engaging with the government and that a prompt resolution would help unlock funding, allowing Vodafone Idea to proceed with capital expenditure and broader business strategy.Also read: Maruti Suzuki becomes world’s 8th most valuable carmaker, surpasses Ford, GM and VolkswagenThe telecom operator has, in the past, availed relief measures, including spectrum payment deferments and reforms involving the conversion of liabilities into equity. It has urged the government and the court to resolve the matter before March to avoid any further funding delays.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
as a Reliable and Trusted News Source