Cabinet freezes Vi's AGR dues for 5 yrs; no communication received, says Vi

Debt-laden Vodafone Idea, however, has denied receiving any official communication from the Centre regarding the relief package

The Union Cabinet on Wednesday approved a relief package for the debt-laden telecom operator Vodafone Idea (Vi), freezing its adjusted gross revenue (AGR) dues at ₹87,695 crore as of December 31, and granting it a five-year moratorium, government sources said.

 

The telecom operator, however, denied receiving any communication from the Centre regarding the relief package. 

 

"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," Vi said in a BSE filing.

 

According to sources, these frozen dues will be payable over a 10-year period, from the financial year 2031-32 (FY32) to FY41. The amount will be reassessed by the Department of Telecommunications at a later stage.

 

 

However, AGR liabilities related to FY18 and FY19 will not see any change. These dues will have to be paid by Vodafone Idea between FY26 and FY31 as per the existing schedule, the sources added.

 

The move, sources said, aims to protect the Centre’s 49 per cent stake in Vodafone Idea, enable an orderly payment of dues, ensure competition in the telecom sector, and safeguard the interests of the telecom operator's 200 million subscribers.

 

The relief follows recent orders by the Supreme Court stating that there is no legal impediment to the Centre reconsidering the issue in public interest, given its substantial stake in Vi and the interests of its subscribers.

 

Shares of Vodafone Idea tanked as much as 16 per cent after the news surfaced and ended the session at ₹10.76 apiece, down 10.9 per cent.