Weeks after the government had announced offering telecom companies a four-year spectrum dues payment moratorium, cash strapped Vodafone Idea said on Wednesday that its board has okayed the proposal.
The company said in a regulatory filing that its “board of directors has approved the exercise of the option of deferment of the company’s spectrum auction instalments for a period of four years (October 2021 to September 2025) in accordance with the notification issued by the Department of Telecommunication to the company”.
The government last week had asked telecom companies like Bharti Airtel, Reliance Jio as well as Vodafone Idea, to inform it by October 29, whether they are keen to opt for the four-year dues moratorium period.
The option is part of the government’s reforms for the telecom sector which it had announced recently to bail out companies which have been financially stressed.
The Telecom Ministry has also given 90 days time to the operators to indicate if they want to opt for converting the interest amount pertaining to the moratorium period into equity.