- Vodafone Idea pays first instalment for 5G spectrum
- The telco confirmed that it has paid ₹1,701 crore to the Department of Telecommunications including interest, towards the 2022 Spectrum Auction instalment.
- It appears that Vi was able to collect funds to pay the dues without the promoters’ help.
- The promoter group entity of Vodafone Idea Ltd (VIL) had assured assistance of Rs 2,000 crore to the company in case it needed financial support to meet the impending payment obligations.
- VIL had cleared about 10 percent of its dues for the April-June quarter to the Department of Telecommunications (DoT) in early September.
Vodafone Idea cleared the first instalment of dues pending for 5G spectrum, as per the telco’s exchange filing. The telco confirmed that it has paid ₹1,701 crore to the Department of Telecommunications including interest, towards 2022 Spectrum Auction Instalments, in accordance with the terms of the notice inviting applications.
The payment of ₹1,680 crore was due on August 17, but the telco availed the 30-day grace period, to make the payment later with interest. In case the company was still unable to make the payment by September 17, the promoters were expected to put in ₹2,000 crore to make the payment, as the failure to pay dues on 5G spectrum would have led to the revocation of Vi’s bank guarantees.
It appears that Vi was able to collect funds to pay the dues without the promoters’ help. In the Q1FY24 quarterly reports, the management insinuated that further fundraising from promoters is expected, which will help them pay their dues to network vendors such as Nokia, Indus Towers etc.
Even though Vodafone Idea has cleared the first tranche of 5G payments, its liquidity problem persists, and the telco is taking a piecemeal approach to clear dues as they come — while necessary capital expenditure into their 4G and future 5G network remains non-existent.
Vi needs to clear another tranche of payments to the DoT by the end of this month. Vi owes the government ₹700 crore in statutory dues related to spectrum usage charges, and license fee payments for the April-June quarter. Vi has already paid the government 10 per cent of the amount due, a few weeks back. However, it needs to clear the rest of the payments by the end of September with interest.
This comes after the promoter group entity of Vodafone Idea Ltd (VIL) had assured assistance of Rs 2,000 crore to the company, if it requires financial support to meet the impending payment obligations, stated a regulatory filing made by the telecom operator on August 14. “The payment is in accordance with the terms of Notice Inviting Applications,” the company said.
VIL had cleared about 10 percent of its dues for the April-June quarter to the Department of Telecommunications (DoT) in early September. The telco has also promised to clear the remainder by the end of this month, a leading newspaper reported, quoting sources.
(With inputs from agencies)
