Vodafone Idea’s CEO, Akshaya Moondra, announced during the company’s investor call that the telecom giant is actively engaging in discussions with the government following the dismissal of their curative petition regarding AGR (Adjusted Gross Revenue) dues. While the outcome of the petition was disappointing, Moondra emphasized that it does not affect Vodafone Idea’s long-term business plan or its existing liabilities.
Moondra stated that the company has initiated fresh dialogue with the government to seek remedies and address calculation errors related to the AGR dues. He also noted that the government has requested Vodafone Idea to put together a detailed request package, outlining their needs for moving forward.
Looking ahead, Moondra stressed the need for further tariff hikes in light of the significant investment requirements within the industry, particularly as the company prepares to roll out 4G and 5G equipment in the second half of the next quarter. This deployment will continue in full flow, alongside efforts to enhance core and fiber capacity as part of Vodafone Idea’s capital expenditure plans.
Ravindra Takkar, who also spoke during the call, highlighted the government’s commitment to maintaining three strong private players in the telecom sector. Takkar reiterated Vodafone Idea’s belief in resolving the AGR issue through continued strong engagement with senior government officials.
Both Moondra and Takkar expressed optimism about finding a solution that benefits all parties involved, as the company navigates the challenges ahead.
Earlier on September 19th –
In a significant blow to Vodafone Idea and Bharti Airtel, the Supreme Court has dismissed their curative petitions, which sought a re-evaluation of their Adjusted Gross Revenue (AGR) dues. The telecom companies had pointed out arithmetic errors in the original calculation of their payments.
Despite these claims, the court upheld the initial AGR demands, finalizing Vodafone Idea’s dues at ₹70,300 crore and Bharti Airtel’s at ₹44,000 crore. This decision concludes the lengthy legal dispute over AGR dues, further increasing the financial pressure on the telecom operators.
Following the Supreme Court’s rejection of the curative petition, Vodafone Idea’s stock (NSE: IDEA) dropped sharply by 15.04%, trading at ₹10.96 as of 12:12 AM, reflecting the market’s reaction to the ₹70,300 crore dues.
