By Admin 
Vodafone Idea Relief Package: The government on Wednesday approved a big relief package for Vodafone-Idea. Under this, a moratorium of five years has been given to pay his dues. This has brought great relief to the debt-ridden telecom company.
PTI sources said that the Union Cabinet chaired by Prime Minister Narendra Modi has agreed to freeze the adjusted gross revenue (AGR) dues of Vodafone-Idea Limited (VIL) worth Rs 87,695 crore.
Government gave extension
Which the troubled company will have to pay from the financial year 2031-32 to 2040-41. AGR dues refers to the payments due by telecom companies to the government on the basis of adjusted gross revenue (AGR). This is the revenue on which telecom operators have to pay license fees and spectrum usage charges.
This includes all revenues, even non-telecom income (such as interest, rent, asset sales). Sources said that apart from these dues, AGR dues related to FY 2017-18 and FY 2018-19 will be payable by Vodafone-Idea without any change during FY 2025-26 to FY 2030-31.
Company facing financial crisis
Vodafone-Idea has been struggling with financial crisis for a long time, mainly due to intense price competition, excessive debt and huge liabilities arising due to change in the definition of AGR. The company is grappling with persistent losses, declining customers and limited ability to invest in network expansion.
Whereas rival companies are rapidly introducing 4G and 5G networks. The company is somehow running due to the repeated relief given by the government and conversion of outstanding amount into equity. Some people were hopeful that the Cabinet would waive some or perhaps all of the AGR dues.
However, the Cabinet instead decided to freeze the outstanding amount. Which will give the company time to recover. Sources said that the outstanding amount withheld will be re-evaluated by a committee on the basis of the audit report and its result will have to be agreed to by both the parties.
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