Moratorium on statutory payouts set to boost Vodafone Idea’s survival chances: Analysts

The four-year moratorium on statutory payouts towards adjusted gross revenue (AGR) and spectrum dues will allow Vodafone Idea NSE 24.58 % defer payments to the tune of ₹96,000 crore, helping its cash flows and possibly boosting its survival chances significantly, analysts said.

They, though, cautioned that despite the four-year deferment of statutory payouts, the financial challenges of the telecom JV between UK’s Vodafone Plc and India’s Aditya Birla Group, are not over as accrued interest during the four-year moratorium span would further add to the telco’s huge ₹1.9-lakh crore debt.