Vodafone Idea’s board has approved the opting of four-year moratorium on AGR payments. The telco has now accepted both a spectrum moratorium and an AGR moratorium, which will enable it to save about Rs 1 trillion cumulatively.
Vi’s decision follows a relief package announced by the government in the middle of September 2021. As part of the plan, a four-year moratorium was provided on AGR and spectrum payments, BGs were reduced, and statutory dues could be converted to equity.
VI is yet to confirm on the option of converting interest accruing on the deferred payments of AGR and spectrum into government equity.
As per industry estimates, the relief package has eased Vi’s immediate cash flow burden. Further, the telco can save about Rs 250 billion in its annual cash flow by opting for a moratorium on both AGR and spectrum dues.
