This note is a follow-up to my earlier writings on this topic. The first one is titled — “The Collateral Damage of VI going out of business”, and the second one is — “Does VI deserve a bailout? If yes, why?”. In this note, I plan to list all the challenges that the GOI will face while it tries to bail out VI from its current financial mess and the possible solutions.
Diluting DoT’s Spectrum & AGR Dues
We all know most of VI’s debt emanates from its obligation to make deferred payments for all the spectrum that it won in past auctions (since 2012). The unpaid value of this debt today stands at approximately Rs 1.32 Lakh Cr (Breakup — Figure 1 of the first Article). Similarly, other operators like Bharti and RJIO also have accumulated such debts.
