Vi may get big relief from the government
New Delhi. Vodafone Idea (Vi) is expected to get big relief from the government. In fact, Vi owes adjusted gross revenue (AGR) of more than ₹ 83,000 crore, to repay which the government can give the company an interest-free extension of four to five years. This means that the company will get 4-5 years time to repay this money and it will not have to pay interest on the outstanding amount. This will provide relief to Vi which is suffering from cash crunch.
Liabilities will be reduced by half
Experts believe that after the moratorium ends, the company will have to pay the dues in six installments. But after reassessment of liabilities, this amount may reduce to almost half. According to media reports, a committee will be formed, which will be headed by a secretary-level officer. This committee will listen to both the Telecom Department and Vi. After this it will be decided how much amount has to be paid to Vi. This decision may be announced in the coming weeks after the proposal is approved by the Cabinet.
How much interest do telecom companies pay?
Vi has to pay more than ₹18,000 crore next March, which will be the first installment after the government ends the moratorium on AGR payments to telecom companies in 2021. Let us tell you that this outstanding was not interest-free, due to which the amount of AGR outstanding increased every year. It is being said that Vi and Bharti Airtel pay 29-30% compound interest annually on the outstanding amount.
Only Vi will get relief
Under the upcoming relief package, Vi's outstanding amount will be sealed and no new interest will be charged on it. However, Bharti Airtel will have to pay its installments on time, because relief will be given only to Vi.
Expressed his inability to pay AGR dues
It is worth noting that Vi has already expressed its inability to pay the outstanding AGR. That is why Kampan has sought help from the government. The government holds 48.99% stake in Vi. This is its largest shareholder. The government had converted some of the company's old dues into stock.
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