InvestorQ : Is it a positive cue that Vodafone Idea has paid another tranche of its AGR dues?
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Is it a positive cue that Vodafone Idea has paid another tranche of its AGR dues?

Answer
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Priyanka N answered.
3 months ago


Vodafone Idea has paid another tranche of Rs.1000 crore to the government towards statutory dues. It has, till date, paid Rs.7854 crore towards statutory AGR dues. Supreme Court in its June 18 hearing had insisted that telecom companies must pay part of the dues to show their commitment. The hearing will continue on July 20.

However, there are still huge gaps between what the DOT estimated and what the companies have accepted. As per DOT estimates, Vodafone Idea still owes Rs.58,254 crore in overall statutory dues. The apex court has already ruled that statutory dues must be calculated after including non-telecom revenues in AGR, the major bone of contention.

While this is a minor positive cue, the outstanding dues are still quite large and the payment timetable is not clear. In addition, Vodafone also needs to provide a timetable that is acceptable to the DOT and the government of India. Vodafone Idea has already been heavily losing market share to Bharti and Jio and that could be a major business concern.