Clarity on AGR to help raise bank debt, says Vodafone Idea CEO

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Subscribe to enjoy similar stories. New Delhi: Clarity from the government on the issue of adjusted gross revenue (AGR) will move the needle on Vodafone Idea Ltd’s efforts to raise debt from lenders, its top executive said, adding that promoters, along with the management, were in discussions with banks for raising ₹35,000 crore.

AGR is the revenue earned by telecom operators from their core services, such as mobile and internet services. Wireless carriers have asked the telecom department for relief after the Supreme Court dismissed review petition of telecom companies seeking corrections in the AGR calculations.

“As any interested party, the lenders are also looking at what is happening on the AGR matter… I, along with my promoters, are engaged with the bank and we should be able to close once some clarity emerges as to what is happening on the AGR," Vodafone Idea chief executive officer Akshaya Moondra said during the second quarter earnings call on Thursday. He also said that any reduction in the AGR liability was not a part of Vodafone Idea’s business plan submitted to the banks, based on which the techno-economic evaluation (TEV) was done by an external agency and submitted to the bank.

“The government remains unequivocally supportive of three private player market and we are engaged with them in finding a solution," he added. On the issue of waiving bank guarantees of ₹24,500 crore, Moondra said that it had asked the government to do away with the need for submitting bank guarantees for previous auctions as has been done in case of auctions since 2022.

Seeking bank guarantees was reducing its ability to raise debt since banks were not willing to offer up the guarantees, Moondra said. “It is very clear that the