Vodafone group may infuse additional Rs 285 crore in Vodafone-Idea.

HomeIndustry TrendsVodafone group may infuse additional Rs 285 crore in Vodafone-Idea.
Vodafone AGR Dues Update

Just a few months ago, in the pre-pandemic world, we published an article on what will happen if Vodafone departs from India. The company was drowning in AGR debts, highest quarterly loss was recorded and with government providing no relief, it was very likely that this London-based telecom service provider would make an exit from the country.

But a lot has happened since then. Vodafone on the global level has met full-year expectations with a 2.6% rise in its core earnings. The company hasn’t given the current year’s estimate because of the uncertain situation caused due to corona pandemic. Along with this, another news came in from Vodafone Group. The Group may infuse funds of Rs 285 crore into its Indian telecom joint venture Vodafone Idea by September. This comes in as a part of an arrangement which was agreed during the merger of Vodafone India with Idea Cellular in 2018. The UK Group had also injected funds in April saying that the payment was to provide its Indian subsidiary with liquidity to manage operations amid the Covid-19 crisis.

Company has also raised concerns over its Indian subsidiary’s inability to settle its AGR dues to government. The Group even said that the company’s share of losses related to Vodafone Idea is mainly because of the adverse legal judgements by the Supreme Court in India.

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