Vodafone Idea shares gain 4% in anticipation of AGR relief measures by end of this year

Shares of Vodafone Idea Ltd. gained 4% on Tuesday, December 2, after Union telecom minister Jyotiraditya Scindia indicated that the Centre may finalise the firm's relief recommendations regarding its additional adjusted gross revenue (AGR) dues in the coming weeks.

Scindia told CNBC-TV18 on Monday that the Centre is awaiting a formal request from the telecom company before moving ahead on any relief measures, adding that the Supreme Court judgment is recent and needs careful evaluation.

Scindia said the ministry is examining the legal boundaries set by the Court. "Judgment needs to be evaluated from a point of view of what can be done and what cannot be done. We cannot cross the border of the SC judgment," he said.

The minister indicated the Centre may be able to complete its assessment and issue recommendations within a couple of weeks, with the relief package contours likely to be announced by the end of the year.

He also emphasised that the SC order was specifically for Vodafone Idea. "Any other company which wants similar relief will have to approach the Supreme Court," he said.

He clarified that Bharti Airtel had not sought any relief on AGR dues. If Bharti Airtel pursues similar relief, it would be for the court of the land to take a decision, Scindia added.

The SC order

On October 27, the Supreme Court observed that in light of peculiar facts such as the Centre's stake in Vodafone Idea, and considering the impact on 20 crore consumers, it sees no impediment in the government reconsidering the telecom firm's AGR dues plea and taking an appropriate call.

However, there was uncertainty over whether the court order applied only to Vodafone Idea's petition of additional AGR dues worth close to ₹9,500 crore, or to the entire AGR dues pending worth nearly ₹80,000 crore.

The top court on

November 3 clarified that Vodafone Idea had asked for relief on both, additional AGR dues and a reassessment of all pending dues. It said the Centre is free to consider relief on both.

Stock performance

Shares of Vodafone Idea gained 3.9% to hit ₹10.32 apiece. The stock has gained 6.4% in the past month and 44.2% in the last six months.

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