If beleaguered telecom Vodafone Idea fails to come up for air, the government may lose out the most with outstanding dues of as much as Rs 1.6 lakh crore in spectrum payments and AGR dues.
Apart from these mounting dues, the telecom company has also taken loans from banks to the tune of Rs 25,000 crore, over 65 per cent of which are from state-run banks. The banks have also extended guarantees to the company, which may default.
"The picture looks grim considering the poor recoveries and unrealised outstanding dues after the collapse of Anil Ambani's Reliance Communications and Aircel, where too several thousands of crores of rupees remain locked. Taxpayers stand to lose the most," an analyst told The Times of India.
The company's bleeding losses are expected to be near Rs 7,000 crore in the March quarter. The debt is over Rs 1.8 lakh crore.
The Department of Telecommunications (DoT) has initiated discussions with banks to address financial stress in the telecom sector, particularly Vodafone Idea Ltd (VIL) that urgently requires fund infusion to stay afloat.
There was a meeting of DOT officials and senior bankers on Friday on the issue of Vodafone, sources said, adding that banks have been asked to look for a solution within the prudential guidelines.
In a backdrop of such large liabilities, both the promoters Vodafone Plc (45 per cent stake) and Aditya Birla Group (27 per cent stake) expressed their inability to bring in additional capital.
(With inputs from PTI)