Telecom stocks surges by 15% as government plans for AGR dues waiver
According to various media reports, the government is contemplating waiving 50% of the interest and 100% of the penalties associated with AGR dues for telecom companies.
Telecom stocks surges by 15 as government plans for AGR dues waiver
Shares of telecom companies experienced a significant surge after reports suggested that the central government is considering waiving a substantial portion of Adjusted Gross Revenue (AGR) dues. AGR refers to the usage and licensing fees that telecom operators are charged by the Department of Telecommunications (DoT).
According to various media reports, the government is contemplating waiving 50% of the interest and 100% of the penalties associated with AGR dues for telecom companies.
This potential move could provide financial relief exceeding Rs 1 lakh crore for these companies. In response to this news, shares of Vodafone Idea Ltd jumped as much as 14.9%, reaching Rs 10.47 per share on the National Stock Exchange of India (NSE) during morning trading.
Join PSU Connect on WhatsApp now for quick updates! Click here
Read Also : IRFC Q3 results: Net profit rises 1.98% to Rs 1,631 crore
Tata Teleservices (Maharashtra) Ltd rallied up to 14.7% to an intraday high of Rs 81.5 apiece, Mahanagar Telephone Nigam Ltd (MTNL) gained 13% to Rs 52.9, while Bharti Airtel shares gained 1% to Rs 1,644.25 apiece. Some reports indicated that the government is working to announce the relief measures in the upcoming Union Budget 2025.
In 2019, Supreme Court’s verdict upheld the government’s definition of AGR and imposed Rs 1.47 lakh crore in dues on telecom companies. This amount included Rs 92,642 crore in license fees and Rs 55,054 crore in spectrum usage charges. Notably, 75% of these dues comprised interest, penalties, and interest on penalties.
Read Also : Senior IPS Officer GP Singh appointed as DG of CRPF