Telecom major Vodafone Idea issued a clarification on media reports stating that the government is mulling a proposal to waive 50 per cent of interest and 100 per cent of penalties and interest on penalties that make up the Adjusted Gross Revenue (AGR) dues levied on Vodafone Idea and Bharti Airtel.
In a regulatory filing, Vodafone Idea said, “This is with reference to the news article appeared in Mainstream Media on 18 January 2025, titled “In Big Relief to Telcos, Govt weighs over Rs 1 lakh crore AGR dues waiver” and the consequent material price movement in the Scrip of the Company today i.e. on 20 January, 2025. We have not received any communication from the Government in relation to the above reported matter. As and when there is any development which requires disclosure, we will do the needful.”
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According to media reports, the proposed move could provide a financial relief of over Rs 1 lakh crore to telecom companies.
The Supreme Court has consistently dismissed appeals for recomputation of AGR dues, including review petitions (2021) and curative pleas (2024). Telecom players including Bharti Airtel and Vodafone Idea had filed petitions against the court’s October 2019 judgment upholding the Department of Telecom’s (DoT) move to recover adjusted gross revenue (AGR) of about Rs 92,000 crore from them.
The 2019 Supreme Court verdict had said that the telecom sector had long reaped the fruits of the Centre’s liberalised mode of payment by revenue sharing regime with the government. Per this mechanism, the operators had to pay a certain licensing fee and spectrum usage fee to the DoT. The Department calculated the fee as a percentage of the AGR.
According to this, Vodafone Idea has to pay estimated dues of Rs 80,000 crore and Bharti Airtel has to pay approximately Rs 42,000 crore.
Relief for telecom players so far has only come in the form of a moratorium on AGR payments, which is set to end in 2025. Annual installment payouts are scheduled to begin in 2026.
If the government announces this waiver of penalties and interest, it could significantly relieve the cash-strapped telecom sector,
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