“…the Board of Directors of the Company has approved the exercise of the option of deferment of the Company’s AGR related dues by a period of four years with immediate effect, in accordance with the notification dated 14 October 2021 issued by the Department of Telecommunications (DoT) to the Company,” said the telco in a regulatory filing on Friday.
Vi’s decision comes on the back of a relief package announced by the government in the middle of September. It included a four-year moratorium on adjusted gross revenue (AGR) and spectrum payments, reduced BGs and the option to convert statutory dues to government equity.
Vi though is yet to confirm on the option to convert the interest accruing on the deferred payments of AGR and spectrum into government equity.
“The other option offered in the said notification by DoT will be considered by the Board of Directors of the Company within the stipulated timeframe, ” the telco said.
Rival
too has accepted both forms of moratorium and Reliance Jio is yet to send its decision to the DoT.
Shares of Vi were trading at Rs 9.58 down by 1.24% on the BSE on Friday.
The package has changed the game considerably, potentially easing Vi’s immediate cash flow burden and if the telco opts for moratorium for both AGR and spectrum dues, it gets to save around Rs 25,000 crore in its annual cash flow.
Beyond the immediate conversion of the interest on statutory dues into equity, the Centre also has the option of converting operators’ principle statutory dues owing to the deferred payment into equity at the end of the moratorium period – or after four years.
