Vodafone Idea witnessed high volatility after the government reports confirmed to CNBC-TV18 that the long-awaited waiver on Adjusted Gross Revenue (AGR) dues is no longer under consideration. The setback means the company will have to continue paying approximately Rs 16,500 crore annually toward its AGR obligations.
According to CNBC-TV18, proposals for waiving AGR penalties and interest charges have been dropped. The Cabinet Secretariat has officially conveyed this decision to the Department of Telecommunications (DoT). Earlier, the DoT had floated a proposal to waive 50% of the interest, but it has now been ruled out.
The Supreme Court had previously dismissed Vodafone Idea and Bharti Airtel’s review petitions seeking a reassessment of their AGR dues, arguing that DoT’s calculations contained errors. However, the apex court upheld its 2021 ruling, leaving the companies with no option but to comply.
Following the announcement, Vodafone Idea’s stock saw a sharp decline but later recovered some of its losses. As per the latest trading session, shares of Vodafone Idea were up 5.49%, trading at Rs 7.49.
The AGR ruling dates back to 2019 when the Supreme Court ruled in favor of the government, determining that revenue from non-core activities should be included in AGR calculations. This verdict left telecom operators with a massive payout liability of around Rs 1.47 trillion, comprising license fees, penalties, and interest. With no relief on AGR dues, Vodafone Idea’s financial burden remains significant.
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