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Home›Made to Measure Tariff›Vodafone Idea clears statutory contributions of Rs 818 crore, Telecom News, ET Telecom

Vodafone Idea clears statutory contributions of Rs 818 crore, Telecom News, ET Telecom

By Guadalupe Luera
January 6, 2022
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New Delhi: Vodafone Idea paid its statutory contributions to the tune of Rs 818 crore to the Ministry of Telecommunications (DoT) in the form of a license fee (LF) and a spectrum license fee (SUC) for the second quarter of 2021-2022, erasing all of its pending statutory contributions.

Coming shortly after consecutive one-off payments to its holders of non-convertible debentures (NCDs), the latest payment of statutory contributions highlights the loosening of the cash flow of the loss-making telecommunications company after the government’s aid plan, according to the reports. experts.

“Vodafone Idea filed Rs 818 crore on Dec. 31 as LF & SUC based on company self-assessment,” a senior government official told ET. Another official said that with this payment their statutory contributions to the DoT were clear at this time.

It comes after the cash-strapped phone company said on Tuesday it paid its NCD holders on time, including the amount of principal and interest. In December, he paid NCD holders around Rs 1,500 crore and the last installment is part of Rs 4,500 crore he is due by the end of February. Vi is due to shell out Rs 4,000 crore in January for the repurchase of MNT and another Rs 500 crore in February, according to the company’s annual report.

The payment is also made in the month following the company’s request for a postponement for the same until next year. “Vodafone Idea wanted to postpone their payments until next year, but we explained to them that it would be much better to make their payments now, as the government had already given them such significant relief and other relief. were in progress, ”the second an official told ET.

The company had paid most of its statutory contributions, set at around Rs 900 crore for the first quarter and the balance was settled through its bank guarantees with the government, the second official said.

“The company’s cash flow is enhanced due to the postponement of spectrum payments and AGR (Adjusted Gross Revenue) payments to the government for four years and they can easily pay close to Rs 1,000 crore per quarter for LF & SUC. to government now. A senior industry analyst told ET on condition of anonymity.

“In terms of regulation of the Securities and Exchanges Board of India… we hereby certify that the company has made timely payment of the principal amount as well as interest in respect of the below mentioned bonds issued by the company Vi said in a regulatory filing Tuesday. The deadline was January 4.

The analyst added that given the recent round of tariff increases, Vodafone’s cash flow would ease further. “We expect a lag of a quarter or two before the impact on revenue begins to show,” added the analyst.

Vodafone Idea had increased its prepaid tariffs by 20 to 25% in December, a much-needed move aimed at boosting its cash flow and revenue.

This follows the first round of government reforms in September, which included the four-year deferral of spectrum and AGR payments, and is expected to help the company save cash flow worth nearly $ 96. 000 crore rupees, according to an internal note. from brokerage firm Citi Research.

Another government relief measure has been a sharp reduction in BG requirements. Vi had around Rs 23,000 to BG 25,000 crore with the government.


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