New Delhi, IANS. Vodafone Idea may find it difficult to pay incremental upfront dues of over ₹ 50 billion in AGR dues. Credit Suisse, a brokerage, stated this in its report. A report states that after paying ₹ 69 billion AGR dues, it is estimated that Vodafone Idea will have ₹ 60 billion in cash left by March 2020, as there was no incremental capex in the fourth quarter of FY 2020.
Credit Suisse said it would be difficult for VIL to pay incremental dues of more than ₹ 50 billion due to Vodafone India Limited (VIL) not having access to incremental debt funds. On the other hand, there will be no problem of incremental advance payment on payment of arrears of 48%. At the same time, Bharti Airtel will not have any problem in incremental upfront payment.
The report states that the VIL cash flow situation will be challenging after FY22. According to the report, VIL can manage its cash problems by FY22 on a two-year moratorium. It added that the company may find it challenging to pay a separate AGR arrear from 2022 onwards.
It is known that Bharti Airtel and Vodafone Idea Ltd. The Department of Telecommunications has sought some time to respond to the affidavits filed by private communication companies like AGR for payment of dues related to AGR. In the ongoing hearing in the Supreme Court on Thursday, the court has asked Idea and Vodafone to show the balance seat. The court said that the government needed money due to the Corona epidemic. Make a plan for payment of payment at the earliest. The next hearing of the case will be held in the third week of July.
