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HomeNewsTelecomVodafone Idea revival plan: Teleco likely to get Rs 20,000 crore in next two weeks

Vodafone Idea revival plan: Teleco likely to get Rs 20,000 crore in next two weeks

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Vodafone Idea is expected to receive a financial infusion of Rs 20,000 crore over the next two weeks, with approximately Rs 7,000-8,000 crore coming from its investors — Vodafone Group Plc and Aditya Birla Group — and the remainder coming through returned bank guarantees (BGs).

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(Vi) is expected to receive a financial infusion of Rs 20,000 crore over the next two weeks, with approximately Rs 7,000-8,000 crore coming from its investors — Vodafone Group Plc and — and the remainder coming through returned (BGs), reported Indian Express.

Vi's fundraising efforts have increased since the government announced a telecom assistance package in September, and the cash-strapped carrier, according to sources cited by the publication, may seek a capital infusion only after achieving a “marginal” increase in its average revenue per user, or ARPU. Vi's ARPU was Rs 104 during the April-June quarter (Q2).

According to reports, the government is considering returning BGs of Rs 14,000 crore to Vi and Rs 8,000 crore to in exchange for the telcos opting for a four-year moratorium on spectrum dues.

The government has reduced the bank guarantee requirement for statutory dues such as license fees from 100% to 20% and stated that the financial instrument will no longer be required to secure instalment payments in subsequent auctions.

This is in addition to a four-year freeze on AGR and spectrum-related payments, a re-definition of AGR to remove non-telecom expenses, and a decrease of the spectrum usage fee (SUC) to zero — both prospectively — as part of the sector's broad-based telecom reforms.

The telco has also attempted to raise Rs 25,000 crore or bring in a strategic partner in the recent year but has been unsuccessful.

Vodafone Group Plc of the United Kingdom and the Aditya Birla Group of India currently own 44.39 per cent and 27.66 per cent, respectively, of Vodafone Idea as co-promoters.

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Tech Observer Desk at TechObserver.in is a team of technology reporters led by a senior editor who brings latest updates and developments from the world of technology.
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