Voda-Idea seeks 1 month to pay Rs 1,680 cr spectrum dues
The company has proposed to pay the amount with interest.
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NEW DELHI: Debt-ridden Vodafone Idea has sought 30 days more time to pay around Rs 1,680 crore for spectrum auction instalment due on Thursday, a senior company official said on Wednesday.
The company has proposed to pay the amount with interest.
“We have submitted a letter to the Department of Telecommunication (DoT) that we propose to pay the spectrum auction instalments of Rs 1,680 crore towards the 2022 auction, which is due on August 17, by availing the grace period of 30 days with interest, in accordance with the terms of NIA (Notice Inviting Applications),” Vodafone Idea chief financial officer Murthy GVAS said during the earnings calls.
The development comes even after one of the promoters has confirmed to the company that it will provide direct or indirect financial support to the extent of Rs 2,000 crore in the event of any fund requirement for meeting impending payment obligations.
The company has also acquired a 5G spectrum in mid-band (3300 megahertz) and millimetre wave in the 26 GHz band in July 2022 spectrum auction.
Vodafone Idea CEO Akshaya Moondra during the call said the company’s discussion with investors and banks has progressed well and expects to close funding in the coming quarter. He said while one of the promoters has given assurance of Rs 2,000 crore for payments, still, there is a need to get external funding. Vodafone Idea’s consolidated net loss widened to Rs 7,840 crore in the Q1 ended June 30. The total subscriber base of VIL declined to 22.14 crore at the end of June 2023 from 24 crore a year ago.
