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Government Weighs Relief Options for Vodafone Idea Amid Survival Concerns: Report

  • The government is considering relief measures for Vodafone Idea to ease its Rs 84,000 crore AGR-related dues, including extending repayment tenure to 20 years and reducing interest rates.
  • Proposals include charging a token amount annually towards dues and exploring creative relief options to ensure Vi's survival.
  • Government's aim is to keep Vi operational due to its significant stake and potential financial losses if the company collapses.
  • Switching to a simple interest structure could save Vi over Rs 16,000 crore and lower annual dues to Rs 6,000–8,500 crore.
  • Vi's dire financial outlook requires over Rs 20,000 crore annually payment, but the company faces challenges meeting these obligations.
  • Vi needs clarity on AGR dues to raise Rs 20,000-22,000 crore from lenders and approved plans to raise funds through financial instruments.
  • Even with reduced annual instalments, Vi may struggle to meet liabilities post-2028-29 due to its current cash flow situation.

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