Vodafone Idea and Bharti Airtel have both exercised their options to defer payments for spectrum and AGR dues. Meanwhile, Reliance Jio has decided not to avail of the moratoriums offered by the government as part of a package to provide financial relief to the telecom sector
Vodafone Idea’s board on Friday said that it has approved the option to defer payments for adjusted gross revenue dues by a period of 4 years on immediate effect. Earlier, VIL had also exercised the option to defer spectrum dues by 4 years. With these deferments, analysts expect the company to get a cash flow release of around ₹90,000 crore, with ₹30,000 crore from deferring AGR dues and ₹60,000 crore from the deferment of spectrum dues.
Bharti Airtel on Monday said it will also opt for the four-year payments moratorium — on AGR and spectrum dues — being offered by the government as part of a relief package for the telecom sector.
Reliance Jio Infocomm on the other hand will not be taking either moratorium. Earlier this week, the telco paid off its 2016 spectrum dues, amounting to ₹10,792 crore. The company still has dues remaining for spectrum bought in 2010 and 2013.
Also see: Reliance Jio pays ₹10,792-cr spectrum dues to DoT
DoT has also offered to convert the dues into equity after the moratorium ends in four years. Telecom operators have to confirm whether they will utilise this option within 90 days.