News Contact Us

Vodafone Idea pumps Rs 1,000Cr in AGR dues, sees 9% surge in shares

Author : Pankaj Singh | Published Date : 2020-07-20 

Indian telecom operator, Vodafone Idea Ltd. has witnessed a 9% surge in shares following the payment of Rs 1,000 crore to the Government of India as part of its statutory dues. The move comes prior to the Supreme Court hearing on the AGR (adjusted gross revenue).

With the recent spending, Vodafone Idea has paid a total of Rs 7,854 crore towards dues on AGR. Previously, the company had pumped Rs 6,854 crore in three tranches.  

According to sources, the Supreme Court said in its last hearing on the AGR matter that private telecom operators, which include Bharti Airtel and Vodafone Idea, must make payments to ‘show their bonafide’, develop a ‘reasonable payment plan’, and file books of accounts for the past decade.

It is vital to mention that Vodafone Idea has lost around 64 lakh subscribers in India. Commenting on which, financial services firm Motilal Oswal Securities said that loss of subscribers by Vodafone Idea is majorly given to its sub-par network qualities as well as its survival uncertainty, which currently depends on the Supreme Court’s verdict to grant an extended moratorium period on AGR liability.

However, as an interim relief, telecom tribunal recently stayed Trai's direction to the telco to withhold a strategy that guarantees priority 4G network to its premium customers. Although, TDSAT (Telecom Disputes Settlement and Appellate Tribunal) said Trai can go ahead with its inquiry and permit a final order in line with the law at the earliest.

Reportedly, in 2019, statutory liabilities arose after the Supreme Court upheld the Indian government's position on considering revenue from non-core businesses in calculating yearly AGR of telecom firms, a part of which is paid as spectrum and license to the exchequer.

Currently, Vodafone Idea is facing around Rs 58,000 crore demand in statutory dues, after the Supreme Court ordered non-telecom revenues to also be included in evaluating statutory dues.

Source Credit: https://economictimes.indiatimes.com/markets/stocks/news/vodafone-idea-surges-9-as-telco-pays-rs-1000-crore-in-agr-dues-ahead-of-sc-hearing/articleshow/77059737.cms

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Alaska Airlines mandates ‘no mask no travel’ policy for passengers

Published Date: 2020-08-07         Author: Pankaj Singh

Alaska Airlines, a Washington-based airline major, has recently announced that passengers over the age 2 years would be required to compulsorily wear face covering or cloth mask over their mouth and nose as a safeguard against the contagious COVID-19 disease. Reportedly, passenger that do not adh... Read More

E-learning startup Byju's nears $400 million funding from DST Global

Published Date: 2020-08-05         Author: Pankaj Singh

The lockdowns and the practice of social distance across India have prompted students to opt for online learning. As digital learning takes center stage during this challenging time, e-learning companies like Think & Learn Pvt. Ltd.( Byju's), Unacademy, and Vedantu have been taking proactive... Read More

MAS grants SRFB privileges to StanChart under improved framework

Published Date: 2020-08-03         Author: Pankaj Singh

The Monetary Authority of Singapore (MAS), Singapore’s financial and central bank authority has reportedly awarded SRFB (Significantly Rooted Foreign Bank) privileges to Standard Chartered Singapore, which allows the bank to operate in additional places of business. The agency said in the p... Read More

© 2020 Fractovia. All Rights Reserved