Vodafone Idea outlook still critical, says Vodafone Group

New Delhi: Vodafone Group Plc. Wednesday said that the outlook for its India telecom JV - Vodafone Idea - "remains critical" and that the telco is actively seeking relief from the government on how to pay its adjusted gross revenue (AGR) dues in a sustainable manner.

“VIL is actively seeking various forms of relief from the Indian Government to ensure that the rate and level of payments it makes to the Indian Government is sustainable and it can meet its other commitments as they fall due,” Vodafone said in its earnings release.

Vodafone Idea needs to pay over Rs 53,000 crores as license fee, spectrum usage charge, interest and penalty dues to the Department of Telecommunications (DoT) post the October Supreme Court order, which widened the definition of AGR to include non-core items. This left 15 telcos, including Vodafone Idea, facing dues of over Rs1.47 lakh crore.

Vodafone Idea, Airtel and Tata Teleservices, facing combined dues of over Rs1.02 lakh crore, have filed a modification petition in the SC, urging that they be allowed to discuss modalities and timelines for the payments with the DoT. They are hoping that they are allowed to spread the payment over several years, thus softening the blow.