Axis Capital Estimates Principle Quantum of Dues Axis Capital said in its note, “Of Rs 590 billion expected in FY20, assuming Rs 210 billion in license/SUC and Rs 210 billion spectrum-related payment, the AGR liability collection works out to Rs 170 billion (Voda-Idea’s Rs 100 billion, Bharti Airtel’s Rs 87 billion) – the principle portion only.” The analysts also said that if the decision is likewise then it would be a positive sign for Vodafone Idea and it would remove the doubts of the telecom on its ability to continue as going concern. The matter currently stands as sub-judice and the Supreme Court will be hearing the modification petition soon on the matter. It is worth noting that the telecom companies have filed the modification petition asking the Supreme Court to let the telcos negotiate with the DoT directly regarding the timeline of the payment. If that happens, then the telcos might get an easier payment deadline. Big Relief Underway for Vodafone Idea Currently, with the interests and penalties, the total dues for Vodafone Idea come out to be Rs 53,000 crore, and for Bharti Airtel, they come out to be Rs 35,500 crore. However, as per Axis Capital, the total payments which DoT might be seeking could be Rs 170 billion, which appears to be the principal amount only.
