Vodafone Idea Aims to Settle Rs 2,400 Crore Government Dues by September

23 Aug 2023 , 11:32 AM

Telecom firm Vodafone Idea plans to settle approximately Rs 2,400 crore of government dues by September, according to insider sources. The company recently cleared outstanding dues of around Rs 450 crore for licence fees and spectrum usage charges for the March quarter of 2022-23.

Vodafone Idea’s target is to address dues for the June 2023 quarter and spectrum instalment, along with applicable interest, within the stipulated time frame. The company had an obligation to pay a licence fee of about Rs 770 crore by July, along with a Rs 1,680 crore first instalment for spectrum acquired in the previous year’s auctions.

While seeking an extension of 30 days for the spectrum payment, Vodafone Idea is also working towards clearing the licence fee payment by September. Late payment of spectrum instalment attracts an annual interest rate of 15 %, entailing around Rs 1,700 crore, and licence fees with an interest of around Rs 710 crore.

The combined pending amount to be settled by September exceeds Rs 2,400 crore. Successfully addressing these financial commitments not only impacts Vodafone Idea’s financial standing but also holds broader implications for the telecom industry. The outcome could potentially influence the company’s competitive position and future trajectory in the market.

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