May need more support from govt: Voda Idea CEO

VODAFONE IDEA MAY need further support from the government once the current moratorium on the adjusted gross revenue (AGR) and spectrum dues ends in September 2025, chief executive officer (CEO) Akshaya Moondra told FE on Wednesday.

- JATIN GROVER & RISHI RAJ

The company may either seek further deferral on the payments or urge the government to convert the dues into equity, he said.

"After one-and-a-half years, we will be in a position to see what support we need from the government. Initially, we may need some support and it's the government which will have the right to choose either to convert or defer the dues. That is their choice every time," Moondra said.

Vodafone Idea's total dues stand at around 2 trillion, of which 98% ₹1.96 trillion - is owed to the government in AGR and spectrum dues. The bank debt is only of ₹4,400 crore.

ONCE THE MORATORIUM ends in September 2025, the company will need to pay to the government ₹29,100 crore for FY26 and ₹43,000 crore annually from FY27 till FY31. Moondra explained that there are two streams of instalments -- one is the original instalment, which in FY26 is about 17,000 crore and in FY27 about 26,000 crore.

"The remaining amount is coming from the deferred instalments.

In its reforms package, the government provided that this can be converted to equity," Moondra said, adding that the conversion opportunity for the deferred spectrum may not be required for every year.