INSUBCONTINENT EXCLUSIVE:
Vodafone India is in talks with local and overseas banks to raise Rs 4,000-5,000 crore that could be used to pay its dues to the Department
of Telecommunications (DoT) to help seal a merger with Idea Cellular at the earliest, people familiar with the matter said
2 telco has approached a few Europe and US-based foreign banks in India as well as two large private sector banks for the funds, they
Even a bond sale is not ruled out
leader Bharti Airtel and be better placed to tackle competition.
Under its conditional merger nod, DoT demanded Rs 7,268 crore upfront
payment for money the two telcos owe
This is split between a bank guarantee of Rs 3,342 crore on account of one-time spectrum charges claimed from Idea and cash payment of Rs
3,926 crore toward the market price for nonauctioned airwaves held by Vodafone India.
While Idea was considering challenging the bank
Communications did this in 2016 and won its case recently
DoT has to return bank guarantees worth Rs 2,000 crore to RCom
though it wants DoT to reduce the amount
The delay has held up the unlocking of an estimated $10 billion of cost and capital expenditure synergies that the combined entity needs to
to raise loans, despite strong parentage
With debt of nearly `8 lakh crore and revenue and profits dwindling amid brutal price competition, telecom is billed as a troubled sector
Loan rates could go up as much as 12% but if Vodafone India furnishes a guarantee from its parent, the cost could come down, said another
person familiar with the discussions.
