Vi makes emergency call to DoT for equity conversions, seeks nod for rejigs to get relief on spectrum, AGR dues

Vodafone Idea (Vi) chief executive Akshaya Moondra has appealed to Department of Telecommunications (DoT) secretary Neeraj Mittal to urgently allow equity conversion of the telco’s upcoming adjusted gross revenue (AGR) and purchase dues relating to the 2012, 2014, 2015 and 2016 spectrum auctions as the cash-strapped company braces for a spike in regulatory payouts. If DoT backs Moondra’s call, the government holding in Vi could jump to 49%, from 22.6% at present.

The telecom JV between UK’s Vodafone Plc and India’s Aditya Birla Group has also told DoT that its current financial position does not allow it to furnish a Rs 6,091 crore bank guarantee (BG) or make a cash payment of Rs 5,493 crore towards a shortfall in the 2015 spectrum auction.

Under these circumstances, it has asked the DoT not to take “any coercive action” against the company.

Moondra’s SOS comes as the telecom department’s proposal to waive the AGR dues of telcos was put on hold amid a lack of consensus within the government’s top echelons, a move that dealt the largest blow to Vi.

“We urgently require cash flow support from DoT for AGR and spectrum instalments falling due… AGR dues and spectrum instalments for 2012, 2014, 2015 and 2016 auctions may be permitted for equity conversion at the earliest as envisaged under the Telecom Reform Package 2021,” Moondra said in a March 11 letter to the DoT secretary. ET has seen a copy of the letter. According to Vi’s letter, total equity conversions would amount to Rs 36,950 crore “on an NPV (net present