Vodafone Idea, MTNL and Tata Teleservices surge up to 15% amid reports of AGR dues waiver; check details

Shares of telecom companies surged on Monday, January 20, after media reports suggested that the central government is considering waiving off a substantial portion of AGR (adjusted gross revenue) dues.

AGR is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT). A few media reports have said that the Centre is considering waiving off 50% interest and 100% penalties on AGR dues for telecom companies. The move will provide financial relief to the tune of over ₹1 lakh crore for telcos, according to reports.

According to reports, Vodafone Idea’s AGR dues could be reduced by over ₹52,000 crore and Bharti Airtel’s dues could drop by nearly ₹38,000 crore under the proposed framework. Tata Teleservices is also likely to see a reduction of around ₹14,000 crore.

Some reports indicated that the government is working to announce the relief measures in the upcoming Union Budget 2025.

To recall, the Supreme Court’s verdict in October 2019 upheld the government’s definition of AGR and imposed ₹1.47 lakh crore in dues on telecom companies. This amount included ₹92,642 crore in license fees and ₹55,054 crore in spectrum usage charges. Notably, 75% of these dues comprised interest, penalties, and interest on penalties.

The central government provided some relief to Vodafone Idea in December 2024 by waiving the requirement to provide bank guarantees for past spectrum dues, freeing up almost ₹24,800 crore. This created scope for lenders to extend additional credit to the telco.