Vodafone Idea Share: Biggest news on AGR of ₹30000 crores

News Topical, Digital Desk : Debt-ridden Vodafone Idea has once again sought relief from the Supreme Court over AGR (Adjusted Gross Revenue) dues. The company has filed a fresh petition in the court seeking a waiver of more than ₹30,000 crore - which is based on the penalty and interest charged on it.

After the news, the company's stock has risen sharply. On May 15, the company's stock opened at Rs 7.01 against the closing price of Rs 6.98. After this, the stock rose 4 percent to reach the price of Rs 7.20. The stock has fallen -12 percent in 3 months, -45 percent in a year.

What is the matter - Giving information about the AGR decision, the company said that the penalty amount on penalty and interest should be removed. Voda Idea argued that the government is now a 49% partner in the company, as it has already converted AGR and spectrum dues into equity. In such a situation, the government itself is unable to give relief because it is "bound" by the court's AGR order.

Telecom sector in crisis: Company's warning - Vodafone Idea claims that if this relief is not given, then not only the company but the entire telecom sector may face an existential crisis.

They have demanded a hearing on May 19. Vodafone Idea owed a total of more than ₹58,000 crore in the AGR dispute. The company has made some payments so far. The government converted the dues into equity under the relief package in 2022, and now the government's stake is 49%. Despite this, the company's financial position remains weak, and it is also facing difficulty in raising capital from investors.

But the government is in a dilemma that the interests of the government and the company are now linked, but the Supreme Court's AGR order remains an obstacle. The company claims that the government cannot give relief even if it wants to, unless there are clear instructions from the court. It is clear from this latest petition of Voda Idea that the structure and policy of the telecom sector now directly depend on the orders of the Supreme Court. If relief is not given by the court, then it can not only cause a crisis for the company, but also policy confusion for the government - especially when the government itself has become a shareholder in the company.