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Big news has come about Vodafone Idea, which is facing a delay in the Rs 25,000 crore debt funding plan. Analysts said that there is a possibility of getting relief from the government. It is believed that the company can convert a large part of the dues into equity. However, they warned that this delay could slow down the financial recovery of the telecom operator.

What is happening...  Vodafone Idea's management says that the company's management had last week acknowledged the possible delay in obtaining debt funding. Here, let us tell you that the Supreme Court had rejected the company's AGR (Adjusted Gross Revenue) curative petition.

At the same time, the company had earlier hoped that it would get a bank loan by the end of November. But Vodafone Idea says that it has adopted a wait and watch strategy regarding its debt funding plan. Negotiations with lenders were progressing rapidly till the company's curative AGR petition was rejected, but after the petition was rejected, the lenders put their decision on hold. What is going to happen now?  Ashwinder Sethi, partner at Analysis Mason, told Moneycontrol that a capital expenditure target of 50,000-55,000 is very important for Vodafone. Because it is behind Jio and Airtel in terms of many network parameters. That is why the company is working fast on many tasks including 5G launch. Vodafone management has once again reiterated that the telecom company and its promoters are talking to lenders for a loan for capital expenditure under the network expansion plan for the next three years. The capital expenditure will mainly focus on 4G coverage, capacity expansion and 5G service. IIFL Securities' note said that raising the loan is important for implementing Vodafone's capital expenditure plan.

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