No Communication Yet: Vodafone Idea Clarifies On Reports Saying Centre Mulling AGR Relief
The clarification came hours after Vodafone Idea's stock jumped over 7% following reports of the Centre considering to provide relief to the telco for its pending AGR dues.
Vodafone Idea on Tuesday clarified to the exchanges that it has not received any communication from the government regarding relief to the company over its pending adjusted gross revenue dues worth Rs 84,000 crore.
"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 telecom firm said in a regulatory filing.
The clarification came hours after its stock jumped over 7% on the bourses following reports which claimed that the government was considering to offer relief to Vodafone Idea over its pending AGR dues.
Earlier in June, NDTV Profit had reported that the the government was actively examining ways to support Vodafone Idea, which is facing acute financial stress following the Supreme Court’s dismissal of its plea on AGR dues.
Top government sources had told NDTV Profit that the Centre remains committed to maintaining healthy competition in the telecom sector and is firmly against the emergence of a duopoly.
The government was evaluating two to three possible measures, including a moratorium on pending AGR payments, they had said.
One proposal under consideration involves asking banks to extend fresh credit to the telecom operator, and in return, the government may offer concessions to lenders, aimed at de-risking their exposure to the telecom sector, the persons privy to the matter had said.
What sets Vodafone Idea’s case apart is the government’s 49% equity stake in the company, acquired as part of a previous relief package that converted interest dues into equity. This unique shareholder position has prompted the government to treat Vodafone’s situation differently from that of other private players like Bharti Airtel, a senior official had told NDTV Profit earlier this month.
"While all telcos are impacted by the AGR liability, Vodafone’s structure and government shareholding mean its case requires a more nuanced approach,” a senior official had said.
