Relief for Vodafone Idea: Cabinet approves 4-year moratorium on telecom dues; changes AGR definition

NEW DELHI: The Cabinet on Wednesday announced a telecom relief package as part of nine big reforms and five process reforms. The package includes, a moratorium with interest rates for four years, a change in the definition of contentious Adjusted Gross Revenues (AGR), 100% FDI through automatic route, spectrum sharing, single-window RoW clearance for tower installation and digital KYC among others.

Out of three telcos, Vodafone Idea needed immediate relief to sustain operations. Vi is reeling under a huge debt of 1.8 lakh crore, out of which a staggering 1.5 lakh crore has to be paid to the government. Deferred spectrum dues stand at Rs 96,270 crore, AGR dues at Rs 58,400 crore, and a bank debt of Rs 23,080 crore. The company has been unable to raise funds to overcome the crisis and is losing its customer base rapidly.