| | MARCH 20229calculations on top of DoT's computations for the interim period.The government as part of the telecom relief package announced in September had allowed telcos to defer spectrum as well as adjusted gross revenue (AGR) dues by four years, to be repaid with interest. It had also cut BG requirements against statutory dues such as license fees by 80 percent. The official added that the DoT is `examining' Vi's request.The DoT though has already started to return some BGs. Report indicated long back that the department has returned BGs worth around Rs. 2,500 crore and Rs. 4,000 crore to Vi and Airtel, respectively. Vi has said that at any time, the DoT has some Rs. 23,000-25,000 crore worth of BGs furnished by the telco.Return of BGs will add to the banks' capital pool, allowing a cash-strapped telco like Vi access to more loans, as it seeks to invest in its 4G network to better compete with stronger rivals Reliance Jio & Bharti Airtel, and stem its subscriber losses. It also needs capital to take a meaningful part in the upcoming 5G spectrum auctions.Vi, with a cash balance of Rs. 1,500 crore and net debt of Rs. 1.97 lakh crore at December-end, has been in talks with a slew of private equity players such as US-based Apollo Global and Carlyle for around $1 billion in equity and debt funding, as it looks to turn around operations. Its promoters--UK's Vodafone Group Plc and Aditya Birla Group (ABG)--are also set to participate in the equity fund raising.Last week, the Vodafone Group sold a 2.4 percent stake in Indus Towers through a block deal, raising over Rs. 1,400 crore. It will also sell another 4.7 percent stake to Bharti Airtel, which may potentially net it under Rs. 3,000 crore. The proceeds from these sales are set to be infused into Vodafone Idea. ABG chairman Kumar Mangalam Birla is also expected to invest around $200 million of his own capital into Vi.Meanwhile, Vi is also considering the sale of overseas convertible bonds to raise $750 million to $1 billion (Rs. 5,550-7,400 crore) at the earliest. The operator has appointed SBI Capital Markets to negotiate the restructuring of loans worth Rs. 20,000-23,000 crore that the telco is due to repay within the next four years.
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