Big breather for Voda Idea as govt clears relief package for telecom sector

The government also accepted taking equity as payment for dues

Vodafone Idea Ltd has got a big breather, with the Cabinet on Wednesday clearing a proposal for giving telcos a moratorium on their adjusted gross revenue (AGR) dues as well as spectrum payments prospectively for the next four years. According to analysts, the move translates into a relief in the company’s cash outflow by over Rs 65,000 crore.

However, with VIL losing market share month-on-month, will it be able to use the improved cash flows to upgrade its network (from 2G to 4G) and get back on track? To be sure, it has got much more than what it had asked