Lenders hope government steps in to prevent AGR from becoming Voda Idea’s breaking point

MUMBAI: Lenders to Vodafone IdeaNSE 6.67 % are factoring in some form of government intervention that will allow the company more time to repay its dues arising out of the Supreme Court’s order on adjusted gross revenue (AGR) liabilities.

Banks have no liability to telecom companies linked to the AGR order because these do not form a part of the guarantees they have given. However, any cash outflow due to these payments could severely dent debtheavy service providers such as Vodafone Idea.

“We are still in a wait and watch mode. AGR dues do not form a part of the guarantees given because these were new demands from the government.