News India Live, Digital Desk: Vodafone idea: The shares of debt -ridden telecom company Vodafone Idea are again in discussion, as this company has informed the Department of Telecommunications that if the government does not support the adjusted gross revenue (AGR) on time, the company will not be able to operate further than FY 26, as the discussion on bank funding will not proceed.
Vodafone Idea has written a letter to the Department of Telecommunications on April 17, 2025 requesting to intervene and make a strong case for the lifeline, and said that if support is not received, it will create a situation where return will not be possible.
VIL CEO Akshay Mundra said in a letter to the Telecom Secretary, “Without the timely support of the Government of India on AGR, VIL will not be able to work beyond FY 26 as the discussion on bank funding will not progress further.”
Vodafone Idea shares rose 1.66 percent to close at Rs 7.35 on 17 May 2025.
Taking a sigh of relief, the Supreme Court has agreed to hear a new petition filed by Vodafone Idea, demanding forgiveness of AGR dues worth about Rs 30,000 crore. Senior advocate Mukul Rohatgi, appearing for the telecom operator, presented arguments before the bench of Chief Justice BR Gavai and Justice Augustine George Christ, stating that the petition requires immediate hearing. The petition is expected to be heard on May 19 by the apex court bench.
In a letter to the Department of Telecommunications, Vodafone Idea said that without loan disbursement from banks, its planned investment scheme will not be successful.
VIL said, “As a result, the improving operations will stop. Even more importantly, the fund -raised funds will be used soon and the entire capital expenditure cycle will stop. In such a case, the entire amount raised in the last 12 months and the investment made by the company so far, as well as the recent conversion will reduce the value of the government’s equity share.”
The telecom company said, “In such a situation, if the service is interrupted for a short time, then the value of the network as well as the spectrum assets will be reduced.”
Vodafone Idea warned the government that if this happens, it will lose about 200 million users. He said, “Timely assistance will mainly benefit the general public and the Indian economy.”
VIL said that without the support of the Center, the company’s EBITDA will decrease and the company will miss the government for the AGR installment in March 2026 itself.
In April 2025, the government converted a portion of the spectrum payment arrears into equity shares worth Rs 36,950 crore to increase its stake in Vodafone Idea from 22.60 percent to 48.99 percent.
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