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Relief for Vodafone Idea as Cabinet Reportedly Approved Relief Package

Highlights
  • Cabinet reportedly authorized reduction for telecom sector
  • Vodafone Idea asks the federal government 15 years for clearing AGR dues
  • Telecom operators lately burdened with Rs 1.47 lakh crore AGR dues

The much-awaited information for Vodafone Idea Limited appears to be lastly right here. Reports on the internet say that the Cabinet has authorized reduction bundle for the burdened telecom sector. While the whole particulars of revival bundle are but to return out, it is a piece of actually excellent news for Vodafone Idea because the telco has been beneath monetary disaster for some time. Vodafone Idea has been eagerly ready for the federal government to implement two things- one is reduction bundle for AGR dues and the opposite one is flooring pricing. For the unaware, Vodafone Idea is presently alleged to pay a whopping Rs 53,000 crore as AGR dues out of which the telco has managed to clear simply Rs 3,500 crore up to now. The Supreme Court is anticipated to go arduous at telcos throughout its subsequent listening to on March 17, however earlier than that, we are able to count on the reduction bundle to return out.

Cabinet Reportedly Approved Relief Package for Telecom Sector

As reported by ET Telecom, the Cabinet has authorized a reduction bundle for the debt-laden Indian telecom sector. Telcos need to pay Rs 1.47 lakh crore dues in direction of Adjusted Gross Revenues. The DoT has up to now obtained simply over Rs 23,000 crore AGR dues with Vodafone Idea being the least payer. Vodafone Idea officers, together with Vodafone CEO, met the federal government and telecom minister looking for reduction and people conferences appear to have labored out.

As of this writing, particulars concerning the reduction bundle usually are not accessible. The report added that the reduction bundle may embrace clearance of AGR dues in a number of years. Earlier, Vodafone Idea sought 15 years for clearing the Rs 53,000 crore AGR dues.

Vodafone Idea has been battling with DoT saying that the AGR dues levied by the division are approach larger than the dues calculated by the telco internally. Vodafone Idea says it must pay Rs 21,500 crore as AGR dues. Not solely Vodafone Idea, different telcos together with Bharti Airtel and Tata Teleservices additionally stated the AGR dues calculated by DoT are on the upper aspect.

Bharti Airtel has managed to clear Rs 18,000 crore out of the Rs 37,000 dues set by the Department of Telecommunications (DoT). The Supreme Court final month directed all of the telcos to clear AGR dues instantly with none delay, however Vodafone Idea has up to now paid solely Rs 3,500 crore. As famous, the following Supreme Court listening to is on March 17 and everyone seems to be awaited for the choice together with telecom operators.

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