Vodafone-Idea Unlikely To Clear Full License Fee Of Q1 FY22

The situation for Vodafone-Idea is getting worse each passing day as it fails to clear the full license fee of the Q1 of this financial year. The telecom operator has failed to pay Rs. 150 crores due to increasing debt and losses in the Q1 results.

This is the second time when Vodafone-Idea delayed the licence fee, which means that the telecom operator might have to face a penalty again. Notably, the telecom operator has to clear Rs. 1.6 lakh crores dues to the Department of Telecommunication.

According to the company's calculation, it can pay telecom licence fees of around Rs. 540 crores; however, the actual amount is around Rs. 690 crores, reports TOI. For the unaware, the telecom operator has to pay 8 percent of the AGR as a licence fee and any delay might cause a penalty to the company. In addition, the government might issue notice to the company if payment will not be made on time.

Promoters Not Investing In Vodafone-Idea

It is worth noting that Aditya Birla Group and Vodafone Group refused to make any fresh investments. In fact, it is looking for investors to raise money. Recently, Kumar Mangalam Birla has resigned from his position and wrote a letter to a cabinet secretary that he wants to offer his 27 percent stake to the government.

"It is with a sense of duty towards the 27 crore Indians connected by VIL, I am more than willing to hand over my stake in the company to any entity- public sector/government /domestic financial entity or any other that the government may consider worthy of keeping the company as a going concern," Birla said in the letter.

Additionally, Birla asked for a bailout package and said that without a revival package might lead to Vodafone-Idea towards collapse.

Telecom Ministry Working On Revival Package

It is important to note that the DoT is working on a revival package, which might improve the telecom operator situation, especially, Vodafone-Idea as it is facing a financial crisis due to mounting debt and ongoing competition.

However, it should be noted that the government has already its stand that it wants four telecom operators in India (three private and BSNL), which means DoT will soon announce some reforms for the sector.