Vi Investors Not Ready To Invest More; Might Take More Time To Clear Dues?

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Even though Vodafone-Idea is not doing good in India, its investors are not willing to invest further in its operations. Vi said that investors want the telco to raise tariffs before investing in the firm. Besides, the telecom operator said that it is looking for one more year to clear its Rs. 8, 292 crores dues for the spectrum.

 
Vi Investors Not Ready To Invest More: Know Why

"We request you to please grant us another year of a moratorium to pay this instalment in April, '23, instead of April, '22. We are making this request well in advance considering the fact that it is almost inevitable that we will not be able to pay this in Apr, '22 and DoT will need some time for processing this request internally," Vodafone- Idea said to telecom secretary Anshu Prakash.

 

The telecom operator has also written a letter to the Department of Telecommunication due to AGR payments, which is scheduled for March 2022. The telecom operator said that it cannot pay the spectrum dues on time.

Vodafone-Idea Facing Challenges In Clearing The Payment

Vi in its letter to the Department of Telecommunication mentioned that it is facing challenges due to the tariff prices. It said that it was in favour of floor pricing, which could address the situation of the pricing issue and losses.

"We are working on raising new funding for the last six months but the investors are not willing to invest in the company because they believe that unless there is a significant improvement in the consumer tariffs, the health of the industry will not recover and they will incur a loss on their investment," Vodafone Idea said.

Vodafone-Idea AGR Dues

The telecom operator also mentioned that it has to pay Rs. 9,000 AGR instalment in March 2022 because of DoT demands. Notably, the telco has to clear Rs. 58,400 crores of AGR dues. Furthermore, the telecom operator added it wants DoT to make some changes as it expects that the amount might reduce to half.

It is worth noting that Vi is under deep financial crisis and looking for support from the Government. Otherwise, it will be very difficult for the operator to operate against Reliance Jio and Airtel.

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