6 major telcos record Rs 4.17 lakh crore debt in FY 2021-22

It was determined that the highest debt of Rs 1,91,073.9 crore was recorded by Vodafone Idea. Telecom companies recorded a total debt of Rs 4.17 lakh crore in FY21-22. 

Bharti Airtel(Airtel), Reliance Jio(Jio), Vodafone Idea (Vi), Bharat Sanchar Nigam Limited (BSNL) and two other telecom companies recorded a total debt of Rs 4.17 lakh crore in FY21-22. 

In accordance with a PTI report, data submitted by Minister of State for Telecom Devusinh Chauhan in the Lok Sabha shows Vodafone Idea recorded a debt of (Rs 1,91,073.9 crore), Airtel (Rs 1,03,408.1 crore), Reliance Jio (Rs 42,486 crore), BSNL (Rs 40,400.13 crore), Tata Teleservices (Rs 20,162.04 crore) and Tata Teleservices (Maharashtra) Limited (Rs 19,703.84 crore).

According to Chauhan, the government has authorized a number of structural and procedural reforms in the telecom industry to stimulate healthy competition, safeguard consumer interests, inject liquidity, boost investment, and lessen the regulatory burden on Telecom service providers.

All the telecom companies have faced cash flow issues because of lower tariffs and high taxes. The Parliament was informed about the total debt recorded by the telcos on Wednesday. It was determined that the highest debt of Rs 1,91,073.9 crore was recorded by Vodafone Idea. Earlier this year, the conversion of Vodafone Idea’s outstanding interest debt of Rs 16,133 crore into equity had been given the government’s approval.

With this conversion, the promotions’ ownership will drop to 50% from 74.99% and the government is anticipated to hold 33.14% of the cash-strapped telecom company that is struggling under a debt load of over Rs 2 lakh crore.

According to the most recent data released by telecom regulator TRAI, the telco has 24.3 crore mobile users, accounting for a 21.33% market share.

Vodafone Idea is the sole telecom provider that hasn’t placed any orders for 5G service equipment and has had trouble paying its vendors’ bills.