Vodafone Idea's demand for AGR payment relaxation unjustified, says group

No government support or intervention in the matter of tariffs should be considered, says Telecom Watchdog.

Vodafone Idea Ltd's demand for a further relaxed payment schedule for their adjusted gross revenue (AGR) payment is unjustified and amounts to blackmailing the government, a non-profit group has said.

"We are astonished with the request of VIL to defer payment of Government dues due to its inability to raise funds which clearly establish its mismanagement of affairs in terms of operation and financial management. It has miserably failed to raise funds by dilution of equity and upgrade its networks with latest technology to reduce cost etc," said Telecom Watchdog in a letter to the Communications Minister. 

Telecom is one of the few sectors unaffected due to Covid-19 pandemic and its revenues have actually increased due to demand for data services, it said. "Such a request only points to the habit of seeking further concessions by blackmailing the government in the name of reduction in competition in the liberalised sector. The deferments in payment of Government dues are sought by misleading with incorrect facts and despite financially sound promoters as detailed subsequently below. "

No government support or intervention in the matter of tariffs should be considered, said the group. Such steps will cause losses to the Government and harassment to the consumers and would not help this company to survive.

VIL should be advised to infuse additional equity in the company or make serious efforts to raise additional funds by dilution of existing equity for fresh investment in upgradation of their network and increase its operational efficiency.