Telecom Shares Surge After DoT Seek 20-Year Time For AGR Payment

Shares of telecom majors Bharti Airtel and Vodafone surged in early trade on March 17, 2020 as the DoT approached the Supreme Court for allowing telecom companies 20 years window to clear their adjusted gross revenue or AGR dues.

Telecom Shares Surge After DoT Seek 20-Year Time For AGR Payment

"We are very pleased with the Department of Telecom's submission before the court to give 20 years time to telecom operators for paying adjusted gross revenue dues, which will help in reviving the industry," COAI Director General Rajan S Mathews told PTI.

Bharti Airtel shares traded with gains of 2.25% and hit an intra-day high of Rs. 480.70 on the BSE, while Vodafone Idea was up 0.7% at Rs. 5.77.

On Monday, Vodafone Idea reiterated that it has paid an additional sum of Rs. 3354 crore towards AGR dues. And with this principal payment is serviced in full as per calculation by the telecom major on self-assessment basis. So, in all the company has paid Rs. 6854 crore in lieu of AGR dues.

Earlier, Airtel claimed to clear AGR dues calculated by the company on self-assessment basis. The company after paying Rs. 10,000 crore on February 17 has made an additional payment of Rs. 8004 crore against AGR dues.

The Department of Telecom has said that it received partial payment of Rs. 25,900 crore towards statutory dues that excludes the latest payment by Vodafone Idea, and has asked telecom service providers to make payments in full.

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