By referendum online | Published: September 19, 2021 09:50 AM2021-09-19T09: 50: 38 + 5: 302021-09-19T09: 56: 27 + 5: 30
The Modi government has made a huge relief decision for many telecommunications companies, including Vi.
The Modi government has made a huge relief decision for many telecommunications companies, including Vi. This will give telcos time to make loans and make multiple payments. Vodafone Idea, i.e. Vi, is said to get the most benefit from this.
The Modi government in the Center has announced an aid package, with all telcos getting a four-year moratorium on regulatory payments. It is said that 9 measures have been announced to improve telecommunications companies.
The relief granted to Vi will have a very positive impact on the banking sector. Dozens of banks, including SBI and PNB, have lent billions of rupees to the company, which is expected to be repaid.
As of March 31, 2021, Vi’s total arrears were Rs 1.9 million. In addition, eight banks have a total debt of 48 billion rupees. Vi has taken direct loans of 23 billion rupees from various banks, while the banks have guaranteed the remaining 25 billion rupees.
Banks expect Vi to increase its investment by around 15 billion rupees to 20 billion rupees this year by paving the way for 100 percent FDI through automation. Vi wants to repay Rs 9,000 crore to banks in the current financial year. This includes non-convertible bonds worth Rs 5,000 crore.
Apart from this, the Modi government has approved spectrum sharing. Spectrum will be allowed to return after 10 years. In addition, the duration of the spectrum has been increased from 20 to 30 years. This means that all telecommunications companies will now be able to use spectrum for 30 years.
Also, when spectrum is auctioned in the future, telcos will not need a bank guarantee. Companies can use the same bank guarantee for different licenses. This is a great relief for the region. It is believed that in the next few days, the three telcos will get relief of around 80 billion rupees in the form of bank guarantees.
Reliance Jio has welcomed the aid package. Airtel, along with Geo, has also welcomed the aid package, saying it would enable a courageous investment in the telecoms sector and enable it to boost India’s digital ambitions.
Meanwhile, the State Bank of India (SBI) and some other banks had appealed to the Modi government in the Center to give Vodafone Idea more time to repay the loan. Bank officials had proposed to the government that Vi should receive immediate relief to pay the arrears.
Senior officials from the State Bank and representatives from the Banking Association of India met with officials from the finance and telecommunications departments this month. Currently, there is an atmosphere of confusion among Vi’s clients, who are burdened with debt. In this context, the CEO of the company, Ravinder Takkar, had tried to reassure intermediate customers.
Vi will continue to provide better service and better options to its customers. He thanked customers for their feedback over the past year. In the coming years, Vi Digital Indian and Digital India will strive to provide the best technology and services for the campaign, said Ravinder Takkar.
The company had incurred a large loss of Rs 7,319 crore in the April-June quarter of the current financial year. Vi’s total revenue decreased 14.1 percent to Rs 9,152 crore in the April-June quarter. This caused a drop in revenue per user. The company’s revenue per user has been reduced to Rs 104. Before that, it was Rs 107.