INSUBCONTINENT EXCLUSIVE:
Vodafone Idea had cash and cash equivalents of Rs 9.2 billion at the end of JuneBanks led by State Bank of India (SBI) have called on the
government to give debt-laden Vodafone Idea more time to clear its tax dues and spectrum fees, two bankers and a government official
familiar with the matter said
The Supreme Court last year ordered the mobile carrier, a joint venture between the Indian unit of Britain's Vodafone Group and Aditya
Birla Group's Idea Cellular, to pay just over $8 billion to the government to settle long-standing dues.Vodafone has a stake of about 44
per cent in the company and Aditya Birla owns nearly 27 per cent
In June, Vodafone Idea's then non-executive chairman Kumar Mangalam Birla warned that without a government reprieve, the Indian mobile
carrier's "financial situation will drive its operations to an irretrievable point of collapse".Vodafone Idea's gross debt as of June 30
was Rs 1.9 trillion, comprising of deferred spectrum payment obligations of Rs 1.06 trillion and an adjusted gross revenue liability of Rs
621.8 billion, its latest stock exchange filing in June showed
The adjusted gross revenue is the usage and licensing fee that telecom operators are charged by the government
The mobile operator also reported that it owes Rs 234 billion ($3.18 billion) to financial institutions.Senior SBI officials and
representatives of the Indian Banks' Association (IBA) met finance and telecom department officials this month and proposed an immediate
breather on the repayment of spectrum dues, the two bankers and the government official, who requested anonymity, told Reuters
"We've had these discussions with the banks, but the issue is the finance ministry needs to be comfortable with the measures," the
government official said.SBI, IBA, and the finance and telecom departments did not respond to Reuters requests seeking comment
The company is facing a repayment of Rs 5-10 billion of non-convertible debentures around January, one of the bankers said
Vodafone Idea declined to comment.Vodafone Group did not immediately reply to an email seeking comment.An Aditya Birla Group spokesman
Vodafone Idea had cash and cash equivalents of Rs 9.2 billion at the end of June, a transcript of a company conference call published on its
website said." All eyes are on New Delhi right now as banks are getting increasingly nervous," another banker with exposure to Vodafone Idea
said.The bankers have also proposed providing some relief to Vodafone by restructuring its dues, one government official and two bankers
Mr Birla stepped down as chairman early last month after appealing for the government bailout
The government has been considering a broader package to help a telecom industry disrupted by the 2016 entry of Mukesh Ambani-controlled
Reliance Jio, which shook up the market with its free voice and cut-price data plans.
