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Vi seeks more time to pay 90% of its balance Q4 FY23 license fee dues
Vodafone Idea (Vi) has requested the Indian government more time to pay its complete Q4 FY23 license fee (LF) dues. The telco has reportedly only paid 10% of the total dues and said that the remaining 90%, it will clear by July 31. Vi has requested an extension in the payment timeline due to its struggling financial situation. Due to liquidity challenges (since it hasn’t been able to raise funds yet), Vi can’t make the complete payment right away. The telco wrote a letter to the Department of Telecommunication in which it sought the government’s support to delay the pending LF payment for Q4 FY23.
Vi mentioned that it has cleared its dues until the previous quarter but requires more time to clear the last quarter’s dues. This would help the telco minimise operational risks and also keep the interests of the investors and stakeholders on top. It is worth mentioning here that the Indian government is now the largest stakeholder in the company, and thus it would want Vi’s interests to be looked after as well.
In the letter, Vi said that it has been facing liquidity issues for the last few quarters and until the time funding comes, it needs support from all the stakeholders, including the DoT and the vendors. Vi has offered to pay the interest that the delayed amount would accrue as per the license fee laws. The telco also mentioned that it is currently working towards raising funds which would allow it to make the right investments for improving cash generation from its operations.
It is important to note that the telco didn’t mention anything about delaying the SUC (spectrum usage charges) payments. This could mean that Vi is clearing the SUC payments on time and only needs an extension for the payment of LF dues. TelecomTalk
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