Policy paradox

SC's nod to revisit Vodafone Idea's AGR offers relief but raises questions on state-backed rescues

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THE SUPREME COURT'S (SC) clarification that the government can revisit the entire adjusted gross revenue (AGR) dues of Vodafone Idea (Vi), rather than just the additional demand of ₹9,450 crore, comes as a big breather not just for the beleaguered telecom operator but also for the government. The AGR has been a drag on Vi's fund-raising efforts and competitive standing. For the government too, which now holds a 49% stake in the company, the verdict comes as a relief since it has a direct interest in ensuring the company's survival. Be that as it may, the larger question remains: Is this the right way to revive a company or to extend policy support? The AGR dispute, which dates back to over two decades, was a legal battle between the government and the telecom operators over the definition of AGR. The government won that case in 2019, resulting in a staggering ₹1.47 lakh-crore liability for the industry. The SC then refused to offer any relief, directing the telcos to pay