JOIN USAfter govt relief, Vodafone Idea may now get fresh infusion of Rs 20,000 cr
Debt-ridden telecom company Vodafone Idea may get infusion of around Rs 20,000 crore in the next two weeks, of which Rs 7000-8000 crore is likely to come from promoters and the rest from bank guarantees returned to the firm as part of the new set of government reliefs to the sector, sources told Indian Express
The telecom tribunal TDSAT had asked the Department of Telecom to put on hold the encashment of bank guarantees in the penalty case of Bharti Airtel and Vodafone Idea till the next date of hearing.
Sources told the publication that the company is likely to opt for the new round of infusions from investors only after marginal improvement in average revenue per user (ARPU), sources told the publication.
Vodafone Idea's ARPU for the April-June quarter stood at Rs 104. Telcos are pushing for an across-sector hike in tariffs to boost the ARPU to Rs 200, which, according to them, is the optimum figure.
The company is reportedly seeking Rs 25,000 crore in infusions or a partner to lift Vodafone Idea out of its crisis. "Much of the funds will have to come in from external sources. K M Birla will put in some money, but not a significant sum while Vodafone is unlikely to pump in more money (from the UK group). Monetising the assets in Indus is really the plan," a top official close to the Vodafone Group had told Economic Times.
Currently, UK's Vodafone Group Plc and the Aditya Birla Group own 44.39 per cent and 27.66 per cent of the firm respectively. The Vodafone Group owns 28.12 per cent in Indus Towers.
Vodafone Idea MD Ravinder Takkar has reportedly spoken of renewed interest from the investors in light of much-needed government reforms in the telecom sector.
As part of the relief package announced in September, the government has cut down the bank guarantees and removed them entirely for fresh auctions. In addition, a moratorium of four years is provided on spectrum payments and AGR dues.
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