Vodafone Idea: AGR Dues, Equity, and Government Stake

Chief executive officer Akshaya Moondra recently prompted the Department of Telecom (DoT) to permit the conversion of upcoming AGR and range fees from the 2012, 2014, 2015, and 2016 public auctions into additional federal government equity.If authorized, this can elevate the federal government’s risk from 22.6% to 49%.

AGR Dues and Government Equity

Vodafone Concept has actually likewise informed the DoT that it can not supply a 6,091 crore financial institution warranty or make a 5,493 crore money repayment related to a shortage from the 2015 range auction. The business has actually begged with the DoT to avoid taking “any forceful action.”

Vodafone Concept filed a fresh petition in the High court on Thursday seeking relief from its installing Adjusted Gross Earnings (AGR) charges. The telecommunications driver has asked for a waiver of over Rs 30,000 crore, particularly in the direction of interest, fine, and passion on penalty elements of its dues.

Supreme Court Appeal for Relief

Vodafone Concept has actually approached the High court for a waiver on its Adjusted Gross Earnings fees. The company looks for relief of over Rs 30,000 crore. Mukul Rohatgi argued that Vodafone Concept’s survival is essential for telecom competitors. The Supreme Court is set up to listen to the appeal on May 19. Vodafone Concept deals with economic distress and seeks federal government assistance.

Rohatgi said that the survival of Vodafone Idea is important for keeping competitors in the telecom sector, including that the firm is unable to bear the monetary worry by itself. He additionally noted that the central government now holds a 49% stake in the business, following a recent equity conversion of interest charges.

Telecom Competition Concerns

The plea comes after the apex Court had, in February, turned down a collection of review applications from telecommunications operators testing its 2021 decision, which upheld the Division of Telecom’ (DoT) calculation of AGR fees and disallowed any kind of rectification of alleged arithmetical errors.