Vodafone-Idea says ability to continue doing business dependent on outcome of AGR case
Vodafone Idea on July 1 said its ability to continue as going concern is dependent on a positive outcome in the adjusted gross revenue (AGR) case.
"We continue to actively engage with the Government to provide relief on various industry related concerns. Separately, the Telecom Regulatory Authority of India (TRAI) has initiated a consultation on floor pricing at the request of all the operators, through COAI," the telecom major said in a statement to stock exchanges.
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Vodafone Idea said that it has already made payments of Rs 68.5 billion (Rs 6,850 crore) in three instalments during the quarter ended March 31, 2020 towards AGR dues.
The Supreme Court will next hear the AGR case in the third week of July. The apex court had on June 11 said telecom companies cannot make staggered payments over 20 years without providing any security.
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The Supreme Court on June 18 asked telecom companies to provide their financial documents and gave the Department of Telecommunication (DoT) time until the third week of July to consider the proposals by the companies on making payment for the AGR dues.
Vodafone Idea on July 1 reported a loss of Rs 11,643.5 crore for the fourth quarter of FY20 - driven by statutory dues and a decaying subscriber base.
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