Two months after the second lifeline, Vodafone’s idea once again aroused the fear of survival

“Highly believe that without bank funding, the petitioner company (Vodafone’s idea) will not be able to operate after fiscal 2025-26 because it does not have the ability to pay AGR installment payments without bank funding, as it does not have the ability to pay for AGR installments ₹Vodafone’s idea said in a petition filed with the Supreme Court on May 13: “According to the DOT (Doctor of Telecommunications), the DOT (Doctor of Telecommunications) is 180 million. Mint The petition has been reviewed.

Troubled operators seek interest exemptions, fines and fines – Synthetic Value ₹45,000 million euros ₹8340 billion times, waiting for AGR membership fees. The four-year suspension of these spending will end in September.

The plea comes after the government switched another additional probation in March ₹statutory dues worth Rs 3695 crore. The second contribution conversion brought the government’s stake in Vodafone’s vision to 49%.

The petition said the company once again sought debt funds from banks after the government’s scope meeting was recently converted to equity, but “they said they could not make progress until these large AGR annual installments were resolved.”

Vodafone’s idea is owed ₹In addition to the government’s $1.19 trillion ₹Membership fees of 834 billion shares ₹2 trillion as of March ended.

According to Vodafone’s idea, the funds raised by the company will be used soon so far and the entire capital expenditure cycle will cease. “In this case, the entire fundraising campaign conducted in the past 12 months and the investments the company has made so far, as well as government interests including the recent conversion, will lose value,” the company said in a petition.

It added: “The company and the government’s full efforts to restore the company will be futile in the coming months and government dues will not be restored”.

Without funds, planned investments will not occur and will stagnate the improvement in operational performance.

Mint’s questions sent by email to Vodafone Idea didn’t get a response until the release date.

Seek restrictions on government

The petition states that the company has urged the Supreme Court to “issuance an appropriate writ, order or direction directed by the defendants of India to act in a fair and public interest rather than seeking/adhering to the payment of fines, fines and interest on AGR dues”.

The company requires the court to issue appropriate writs, orders or instructions to limit the government’s insistence on paying interest on installment payments. Vodafone’s idea urges the court to also restrict the government from “proposing arbitrary and illegal claims of interest interest”.

Government lifeline

Vodafone’s idea has sought a supreme court’s abandonment on the AGR because no further relief is expected to be provided by the government. Another equity conversion would make Vodafone’s envisioned government shares more than 49%, which would make it a public sector commitment (PSU).

According to the petition, the company submitted an agency to the government on April 17, demanding that it waive the fines, fines and interest on its AGR dues.

AGR spending is coming

Vodafone’s idea says in the petition that the government’s AGR responsibility needs are ₹834 million as of March ₹180 million worth of the 180 million worth as of March 31, 2026.

“It is important to note that this payment is about. ₹“Over the next six years, $1.800 billion will have to be paid annually, which is far beyond the company’s annual operating cash creation capability,” the petition said. ₹84 million to arrive ₹92 billion.

As of December 2024, Vodafone’s total debt has existed ₹2.3 trillion. that is ₹770 million is AGR. ₹1.4 trillion is spectrum responsibility. In 2021, the government has provided a four-year suspension of some AGR dues for Spectrum Auctions before 2021 as part of the telecommunications relief plan. The suspension will expire in September this year.

“Vodafone’s idea has the right to approach the Supreme Court in terms of interests and fine components. This must be read with the media that the government has already provided for,” said Sunayana Basu Mallik, an advocate and lawyer advocate and lawyer.

“In the past decade, technological developments within the telecommunications industry have resulted in lost revenues from financial losses,” Malik said. “In light of changes in the sector situation, the Department of Telecommunications (DOT) has adopted a new internal perspective and the environment currently operating in the telecommunications business, and it is now possible to consider the judgment based on the treatment petition provided earlier.”

AGR hits

The biggest financial pressure for operators is due to the AGR problem. In 2019, the Supreme Court ruled that Vodafone’s idea and its peers needed to pay statutory liabilities to AGRs, including non-Telecke income. There is a huge gap between the calculations of the telecommunications department and the membership fees that the telecom operators self-assess. For Vodafone’s idea, DOT calculated the total membership fee ₹Estimates of 580 million companies ₹2.15 billion.

In September 2024, the Supreme Court rejected a treatment petition seeking relief from Vodafone Creative and other operators in the 2019 Apex Court ruling.

Vodafone’s idea has increased its equity since March 2024 and now ₹260 million (except for converting government dues into equity).

Vodafone Creative shares rise 3.6% ₹7.23 on BSE is up 1.48% from the benchmark Sensex.