Vodafone Idea, Bharti Airtel shares in focus today as reports suggest AGR relief

The government is reportedly considering a significant relief proposal for telecom companies, including Vodafone Idea and Bharti Airtel, by waiving 50% of interest and 100% of penalties on adjusted gross revenue (AGR) dues. This measure, if finalized, could provide financial relief exceeding ₹1 lakh crore for telcos, with Vodafone Idea benefiting by over ₹52,000 crore and Bharti Airtel by nearly ₹38,000 crore.

Analysts believe this move could be a game-changer for the Indian telecom industry, potentially preventing the market from becoming a private sector duopoly. Sources suggest that the relief proposal is being discussed at the highest levels of government, including the finance ministry and the telecom department, and may be announced in the February 1 budget.

Reliance Jio remains unaffected by the proposed measure as it has no legacy AGR dues. The development follows a recent decision waiving the requirement for telcos to submit bank guarantees for past spectrum dues, benefitting Vodafone Idea with a ₹24,800 crore respite.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.