Sources said the department of telecommunications is working out the package and will hold discussions with the finance ministry before it is finalised
Vodafone Idea lenders dial Finance ministry, want relief for telco
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Synopsis
The lenders’ move comes as the telco has written to the telecom department (DoT), pointing out that its fundraising talks have hit a wall because investors are wary of putting money into a sector hampered by “below-the cost” consumer tariffs.
Vodafone Idea has further said that it needs a year more to make spectrum payments of Rs 8,292 crore as it’s not generating adequate cash from operations and adjusted gross revenue (AGR) payments are siphoning away liquidity.
A consortium of lenders to
Vodafone Idea (Vi) has sought the finance ministry’s intervention to provide some relief to the cash-strapped operator, raising concerns over the telco s survival amid dwindling cash balances.