The existence of Vodafone-Idea, the telecom company that has a gross revenue (AGR) balance, is at risk. Although the company is burdened with losses and debt, lending banks are also worried. Axis Bank has been added to the list of Vodafone-Idea lenders. Amitabh Chaudhary, CEO of Axis Bank, has said that Vodafone-Idea Limited’s financial position is worrisome. However, the government is hoping to find a solution.
“If this company survives, they will continue to pay spectrum and cannot find a guarantee,” Amitabh Chaudhary said in an interview with Bloomberg TV. “I am sure the government will look for solutions when it comes to the crisis. The government will not let it stop,” Choudhary said.
Reconsideration Application Submitted: Meanwhile, Vodafone-Idea has filed a reconsideration petition with the Supreme Court in the matter of AGR. It is believed that Airtel may also contact the court. On July 23, the Supreme Court dismissed Airtel and Vodafone applications, including appeals to improve the AGR calculation. Both companies have appealed to the Supreme Court to direct the reconsideration, citing “mathematical errors” in the balance of payments. However, the Supreme Court rejected the appeal.
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What is an AGR balance: In fact, it is a kind of usage and licensing fee that is charged by the Department of Telecommunications (DOT) of the Ministry of Communication. The telecommunications department has been demanding dues from telecom companies for many years. At the same time, companies are hesitant to offer it. After the dispute went to court, in 2019, the Supreme Court ordered telecom companies to pay dues. This amount is so high that the financial position of the companies deteriorates. Vodafone-Idea and Airtel have been heavily affected. This is the reason why both telecom companies are looking for a solution in different ways.
