BIG Relief For Vodafone Idea! Cabinet Nods Relief Package, Freezes Rs 87,695 Cr AGR Dues; VI Shares Slide 16%

Vodafone Idea Share Price Today: In a major relief for telecom giant Vodafone Idea, the Union Cabinet, on Wednesday, December 31, approved a relief package for the company and also froze Rs 87,695 crore of AGR dues. Meanwhile, Vodafone Idea's share price saw significant volatility during Wednesday's intraday trade, with shares falling as much as 16% during the period.

Vodafone Idea shares were trading 15% lower at Rs 10.26 per share on BSE with a market capitalisation of Rs 1,11,159.95 crore. Earlier, the stock had touched its 52-week high mark of Rs 12.80 per share and an intraday low of Rs 10.26 per share.

Cabinet Approves Vodafone Idea AGR Dues

The Union Cabinet on Wednesday approved the long-awaited relief package for Vodafone Idea. As per the package, the centre has reportedly decided to freeze the telecom operator's adjusted gross revenue (AGR) dues at Rs 87,695 crore, reported PTI citing sources.

As per the decision, Vodafone Idea will not be required to make AGR-related payments immediately. As per the PTI report, the telecom operator would be required to pay the frozen dues over a period of ten years from financial year 32 (FY 32) to financial year 41 (FY 41).

The Telecom Department will also reassess the AGR dues frozen based on the Deduction Verification Guidelines and audit reports, sources told PTI. The outcome will be decided by a committee appointed by the government. In addition, the AGR dues pertaining to FY18 and FY19 (already finalised by the Supreme Court order of 2020) will be payable by Vodafone Idea over FY26 to FY31, without change, sources told PTI.

The steps will protect the interest of the government, having about 49 per cent stake in the telco, enable orderly payment of dues to the Centre by way of spectrum auction charges and AGR dues, ensure competition in the sector and protect the interest of 20 crore VIL consumers.