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Vodafone Idea awaits government clarity on AGR dues after freeze reports of Rs 87,695 crore
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Company denied receiving official communication and promised updates on developments
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Shares fell nearly 11% after hitting 52-week high amid market reaction to AGR news
Vodafone Idea Ltd. on Wednesday said it is still awaiting clarity on AGR dues from the government after reports said a freeze on dues of Rs 87,695 crore instead of a waiver was in the offing.
"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," the company informed stock exchanges after they sought clarification on media reports and scrip movement.
Shares of Vodafone Idea, after reaching a 52-week high during the session, hit the lower circuit of 15% within minutes of the media reports. It settled nearly 11% lower at Rs 10.76.
The Union Cabinet decided to freeze the AGR dues of VIL as on Dec. 31, 2025 at Rs 87,695 crore instead of a waiver. The payment of this amount is being rescheduled over financial year 2031-32 to 2040-41, government sources told NDTV Profit.
The AGR dues frozen shall also be reassessed by the Department of Telecom based on Deduction Verification Guidelines and audit reports. The outcome will be decided by a committee appointed by the government and that shall be binding on both parties, sources said.
In addition, the AGR dues pertaining to FY18 and FY19, that were already finalised by a Supreme Court order in September 2020, will be payable by Vodafone Idea over the period FY26 to FY31 without any change, sources said.
Markets have been expecting an AGR waiver of at least 50%, which could have had major positive implications on cash strapped Vodafone Idea's long-term prospects.
However, sources said that the Department of Telecommunications is likely to form a committee to look into reassessment of AGR dues, in about six to eight months.
The central government owns 49% equity in VIL, which has over 20 crore customers in India.
The Vodafone Idea share price is up 38% this year. Out of 22 analysts tracking the company, five maintain a 'buy' rating on VIL stock, seven recommend a 'hold,' and ten suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target is Rs 8.96.
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