Vodafone Idea can get $1 billion annual relief if Centre cuts down interest rate, says BNP

Vodafone Idea can get $1 billion annual relief if Centre cuts down interest rate, says BNP

• By Staff Writer

A combination of reduced interest on deferred spectrum liability along with an interest waiver on its adjusted gross revenue (AGR) dues can garner nearly $1 billion in annual relief for struggling Vodafone Idea NSE -2.07 % (Vi) and boost its survival chances, BNP Paribas said.

The global brokerage said the loss-making telecom JV between UK’s Vodafone Plc and India’s Aditya Birla Group would be able to further cut its current Rs 1.9 lakh-crore debt burden if the government allows it to surrender unused spectrum in non-priority markets, moves that would help the telco reduce the net present value (NPV) of its overall liabilities and improve future cash flows.