Engaged with govt to find solution to AGR issue post plea dismissal by SC: Vodafone Idea CEO

Time of India

2 days ago

Vodafone Idea
(VIL) on Monday said it is engaged with the Centre to find a solution to the
AGR issue
, with CEO
Akshaya Moondra
stating he sees no reason why the government should be constrained in any way to offer relief.
During VIL's investor call post Q4 and FY25 earnings, Moondra said the Average Revenue Per User (ARPU) in India is the lowest globally, and that industry's returns are below cost of capital.
The VIL top boss stressed that the industry needs to move towards a pricing model, where heavy data users contribute more proportionally to their higher usage, than the current pricing structure -- where incremental data usage comes at an extremely low, unsustainable price.
On the AGR issue, Moondra said the telco continues its engagement with the government to find a solution.
"As far as the government relief is concerned, I think we are engaged with the government... what the government will do, I cannot comment on their behalf. But definitely post the judgment, we continue with our engagement with the government to find a solution to the AGR matter," he said.
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On whether the SC's move would allow the government to offer support to the company or specific clarity would be needed for the Centre to proceed further, Moondra said: "So our view is that the government can do..."
At the time when the 2021 reforms package was announced, there had been some PIL filed in the
Supreme Court
, Moondra said and added that even then, the apex court had taken the view that it is a policy matter which is within the purview of the government.
"And that time, also the Supreme Court had, when their final order was given, they had stated to the effect that this is a policy matter which is within the purview of the government, and they would not interfere in it. So in some ways, if you look at the reforms package of September 2021, the government has taken the initiative, and I see no reason why the government should be constrained in any way to offer relief, which it decides to do," he claimed.
Moondra clarified that the government does not intend to take a position in the company's board given its 49 per cent stake at present, post recent dues to equity conversion.
"There is no intent to take up any board seat, the shareholding of the government is a consequence of the government providing support in reducing dues," he said.
The comment assume significance as the embattled telecom operator had been seeking waiver of around Rs 30,000 crore AGR dues, as it struggles with statutory liabilities and dwindling subscriber base -- as per the latest subscriber data by TRAI, the mobile customer base of VIL shrunk 6.47 lakh in April to 20.47 crore.
Last month, the Supreme Court dismissed its plea, dealing a big blow to the crisis-ridden telecom operator. Just weeks before that, VIL had sent an SOS to the telecom department stating that without the government's timely support on adjusted gross revenue or AGR, it will not be able to operate beyond FY26, as the bank funding discussions will not move forward.
Debt-ridden telco Vodafone Idea on Friday reported narrowing of losses for the March quarter to Rs 7,166.1 crore and its board greenlit fundraising of up to Rs 20,000 crore subject to shareholders' approval and statutory nods.
The revenue for the fourth quarter (Q4FY25) rose 3.8 per cent year-on-year to Rs 11,013.5 crore. The Q4 losses narrowed to Rs 7,166.1 crore for the just-ended quarter, from Rs 7,674.6 crore a year ago.
For the full year FY25, the losses narrowed to Rs 27,383.4 crore, as against Rs 31,238.4 crore in the previous fiscal. The full year revenue rose 2.1 per cent to Rs 43,571.3 crore.
The company had said that the up to Rs 20,000 crore fundraising in one or more tranches will be "either by way of further public offer or private placement or through any other permissible mode as may be considered appropriate..." PTI MBI BAL DRR
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