Setback for Vodafone Idea as Government Drops Consideration of AGR Relief: Report

The government may no longer be considering relief on Adjusted Gross Revenue (AGR) dues, and the Cabinet Secretariat has informed the Department of Telecommunications (DoT) of this decision, marking a setback for telecom operators Vodafone Idea and Bharti Airtel, CNBC-TV18 reported, citing sources.

• Make Telecom Talk My Trusted Source
• 
• 

Also Read: Government Confident of Vodafone Idea’s 4G and 5G Expansion Plans: Report

Proposed AGR Relief Package Unlikely to Proceed

Reportedly, the DoT had earlier proposed a relief package, including a 50 percent waiver on the interest component and a full waiver on penalties and interest on penalties. However, with this latest development, the proposal is unlikely to move forward.

The DoT was hoping to grant relief to the telecom sector by waiving AGR dues. The Supreme Court, through multiple decisions, has confirmed the AGR dues payable by Airtel and Vodafone Idea, the report quoted sources as saying.

Following the news, shares of Vodafone Idea and Bharti Airtel fell from their intraday highs.

Minister’s Response to Waiver Reports

Telecom Minister Jyotiraditya Scindia had spoken to Moneycontrol on March 18 but did not comment on the AGR issue. He declined to address reports suggesting that the government is considering a Rs 1 lakh crore waiver of AGR dues, and said, “…at this point, I will not comment on that because that’s not on my table.”

Also Read: Vodafone Idea Fails to Provide Rs 6,090 Crore Bank Guarantee to DoT: Report

Estimated AGR Liabilities

Estimates suggest that Vodafone Idea’s AGR dues could be around Rs 80,000 crore, while Bharti Airtel’s liabilities may reach Rs 44,000 crore as of now.