Loan proposals by Vodafone Idea may be considered by major public sector lenders if the government agrees to a waiver of adjusted gross revenue dues, according to people familiar with the matter.
Large public sector lenders have informed the company that a proposal may be considered only after due clarity comes, the people said. Vodafone Idea owes more than Rs 83,000 crore in AGR dues to the government at present — of which — the company has sought a waiver on Rs 45,000 crore.
If the government gives such a waiver or at least more time to repay such dues, major lenders are willing to lend to the company, the people quoted above said.
Lenders agree that Vodafone Idea’s financial position has improved and its future projections look promising. However, the AGR dues are a drag, the people said.
While major public sector lenders may extend loans, private lenders have declined any participation in a loan proposal for now, a banker with direct knowledge of the matter said.
On Tuesday, NDTV Profit reported that the government is considering possible solutions for Vodafone Idea’s financial troubles.
According to officials who requested anonymity, the central government is keen to avoid a duopoly in the telecom sector. The government is likely considering two or three solutions, which include a proposal to provide a moratorium on the AGR dues.
The government is also keen to find a solution for the Vodafone Idea problem because it is now a 49% shareholder in the company. Allowing the company to fail might not be looked at favourably, the banker quoted above said.
