Vodafone Idea shares rise 9% as Centre seeks AGR solution
What's the story
Vodafone Idea's shares surged by a whopping 9% on Friday, following the Indian government's indication of not opposing the telecom company's plea related to Adjusted Gross Revenue (AGR). The development came after the Centre told the Supreme Court that it was not opposing Vodafone Idea's request and that "some solution is required."
Government stance
Government not opposing plea, some solution required: SC statement
"Not opposing Vodafone Idea plea, some solution is required, government is also an equity holder. Some solution may be required, subject to Supreme Court approval," Centre told the apex court. This means that the government is not against the telecom company's request and recognizes its role as a stakeholder. The Supreme Court will hear the case on September 26.
About the case
Much of new demand overlaps with settled periods: Vodafone Idea
The case arises from the Supreme Court's March 2020, order, which upheld AGR dues up to FY17 and barred reassessment. Despite this, DoT has raised fresh claims for FY18‑19. Vodafone Idea argued much of the new demand overlaps with settled periods. The government now owns 48.99% of the company after converting ₹53,083 crore dues into equity. With total AGR liabilities nearing ₹2 trillion, Vodafone Idea warned the added claims threaten its survival, 198 million subscribers, and over 18,000 jobs.