Tue Jan 21 11:54:54 UTC 2025: ## Vodafone Idea Shares Surge on Potential AGR Dues Relief

**MUMBAI, INDIA** – Shares of Vodafone Idea Ltd. (Vi) soared 10 percent on January 20th following reports that the Indian government is considering significantly reducing the company’s adjusted gross revenue (AGR) dues. The proposed relief, which could exceed ₹1 lakh crore (approximately $12 billion USD) across multiple telecom operators, includes waiving 50 percent of interest and 100 percent of penalties and interest on penalties. This would potentially reduce Vi’s dues by over ₹52,000 crore.

The potential relief stems from multiple meetings between the Department of Telecommunications (DoT) and telecom operators who highlighted their financial difficulties. While the proposal offers substantial relief, officials must address concerns about relinquishing public funds and navigate multiple approval levels.

Legal experts at JM Financial caution that the government would need to amend the Telecom Act to legally waive the dues, as the Supreme Court’s 2019 AGR ruling remains in effect. They suggest a moratorium extension or conversion of dues into equity as more likely outcomes.

This positive news follows recent government waivers on bank guarantees for past spectrum auctions, which provided Vi with significant financial relief. Despite this rally, Vi shares remain down 30 percent over the past year, reflecting ongoing investor concerns about the company’s financial stability. The September Supreme Court dismissal of petitions to recalculate AGR dues continues to cast a shadow on the company’s future. The proposed AGR relief, while significant, remains subject to official confirmation and approval.

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