‘No communication received’: Vodafone Idea on Cabinet relief reports

Vodafone Idea clarified its stance on Wednesday after multiple news outlets claimed the Union Cabinet had sanctioned a five-year deferment and locked its adjusted gross revenue (AGR) dues at ₹87,695 crore.

In a filing to the stock exchange, the telecom company dismissed the reports as speculative and confirmed it had yet to receive any official notification about such relief measures.

“We wish to clarify that no official communication has been received from the Government regarding the matter cited in media reports,” the company stated.

“Should any developments necessitate disclosure, appropriate announcements will be made,” the filing added.

This statement followed sharp market reactions to earlier claims of government relief. Vodafone Idea shares plunged significantly throughout the trading session.

The stock tumbled as much as 15.01% (₹1.81) to an intraday low of ₹10.25 before closing at ₹10.76 on the Bombay Stock Exchange (BSE), marking a decline of 10.85%.

Reports earlier in the day suggested the Union Cabinet had approved a financial reprieve for the struggling telecom operator by locking AGR dues at ₹87,695 crore as calculated through December 2023.

According to these unconfirmed reports, the locked amount would be repaid over a decade beginning in FY2032 through FY2041. The Department of Telecommunications would later review the amount based on audit outcomes and deduction verification protocols.

The final decision on the reassessed amount would reportedly be determined by a government-appointed committee.

However, the purported relief package reportedly excludes AGR liabilities for FY2018 and FY2019. These dues, finalized under a 2020 Supreme Court of India ruling, remain payable between FY2026 and FY2031 according to existing timelines.

With inputs from IANS