Vodafone Idea gets govt lifeline

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AGRREPRESENTS THE revenue base on which telecom operators are required to pay licence fees and spectrum usage charges. Vodafone Idea's liabilities shot up after a Supreme Court ruling in 2019 which upheld the government's interpretation of what constitutes AGR, leading to large backdated demands, including interest and penalties.

Officials said that AGR dues for FY18 and FY19 finalised pursuant to a September 2020 order of the SC will not be reopened. These amounts will continue to be paid between FY26 and FY31 without any change. The annual outgo under this head is estimated at around ₹120 crore, translating into roughly ₹700-800 crore over the six-year period, according to sources.

Vodafone Idea, in a filing with BSE seeking clarification, said it had not yet received any formal communication from the government on the Cabinet decision. "As and when there is any development which requires disclosure, we will do the needful," the company said.