vodafone idea
Vodafone Idea on Friday confirmed that the payment of its AGR dues for the period from FY 2006-07 to FY 2018-19 will be postponed from December 31, 2025. According to the plan revealed by the telecom company, it will have to pay Rs 124 crore annually for the next six years, from March 2026 to March 2031. After this period, the operator will pay Rs 100 crore per annum over four years, from March 2032 to March 2035. The remaining AGR dues will be paid in equal annual installments over six years, from March 2036 to March 2041. Shares of the telecom operator rose by 8.78 per cent on BSE in early trade on Friday and the company's shares reached the day's high of Rs 12.51 during the trading session.
Apart from this, the telecom operator, which is facing cash crunch, said that a committee will be constituted by the Telecom Department to reevaluate the AGR dues, whose decision will be final. AGR dues refers to the payments due by telecom companies to the government on the basis of their AGR. This is the earnings on which telecom operators have to pay license fees and spectrum usage charges. This includes all revenues, even non-telecom income (such as interest, rent, asset sales).
Vodafone Idea has been struggling with financial crisis for a long time due to price competition, huge AGR liability and high loan arising due to change in definition of AGR. The company is facing many problems like persistent losses, declining number of subscribers and limited ability to invest in network expansion, while rival companies are rapidly launching 4G and 5G services.
After this news, there has been a good rise in the shares of the company. If we look at the data, the company's shares on BSE rose by 8.78 percent to Rs 12.51 during the trading session. Which is very close to 52 weeks high of Rs 12.80. By the way, the company's shares had opened at Rs 12 in the morning. Whereas a day earlier the company's shares had closed at Rs 11.50. If experts are to be believed, the company's shares may see further rise in the coming days.
