Vodafone Idea is facing a setback in its debt-funding plan worth Rs 25,000 crore, which could hinder its financial recovery.

The telecom operator"s bank loans, which were expected to be secured by the end of November, may face a delay due to the Supreme Court"s rejection of its AGR curative petition.

Lenders have become cautious and are holding off on making decisions regarding debt funding until the government provides clarity on unresolved statutory dues.

Discussions with lenders were progressing well until the dismissal of the curative AGR petition, which prompted a change in their approach.

Vodafone Idea"s capital expenditure target of Rs 50,000-55,000 crore is crucial for the company to catch up with competitors Reliance Jio and Airtel in terms of network metrics such as the number of sites and 4G coverage.

This funding delay is expected to have a significant impact on Vodafone Idea"s financial recovery and its ability to maintain or increase its subscriber market share.