The Department of Telecommunications (DoT) has declined to provide any relief to Vodafone Idea Ltd (VIL) on its ₹6,090 crore bank guarantee demand, according to CNBC Awaaz. The debt-laden telecom operator has been given a March 10 deadline to submit the guarantee, which is required for spectrum acquired after 2015 and must be provided for a period of one year.
Government’s stance and payment alternatives
In an effort to ease financial pressure, the government has offered Vodafone Idea an alternative option:
- Instead of submitting a full ₹6,090 crore bank guarantee, VIL can opt to make a direct cash payment of ₹5,493 crore.
- However, the telecom operator must comply with one of these options to meet its spectrum-related financial obligations.
The move signals the government’s firm stance on ensuring Vodafone Idea continues meeting its liabilities, despite the telco’s ongoing financial struggles.
Vodafone Idea’s financial and legal developments
- In January 2025, the Supreme Court upheld a Bombay High Court ruling, granting VIL a tax refund of ₹1,600 crore.
- For Q3FY25, Vodafone Idea reported a net loss of ₹6,609.3 crore, improving from ₹7,175.9 crore in the previous quarter.
- Revenue from operations increased 1.7% sequentially to ₹11,117.3 crore, supported by higher average revenue per user (ARPU), which rose to ₹173 in Q3FY25 from ₹166 in Q2FY25.
