The federal government is making ready a brand new set of aid measures for the telecom business.
Following the removing of the financial institution assure requirement for previous spectrum dues in December 2024, officers at the moment are contemplating waiving a good portion of adjusted gross income (AGR) dues levied on corporations like Vodafone Concept and Bharti Airtel after the Supreme Court docket’s 2019 ruling.
This initiative might be a game-changer for India’s telecom sector, providing essential monetary aid to struggling operators.
Based on sources, the Division of Telecommunications (DoT) has held a number of discussions with telecom operators, together with Vodafone Concept, the place the businesses emphasised their monetary difficulties.
The proposed aid measures reportedly embody waiving 50% of curiosity and 100% of penalties, together with curiosity on penalties. If carried out, this might present telecom operators with monetary aid exceeding Rs 1 lakh crore, with Vodafone Concept (Vi) benefitting essentially the most, receiving over half of the aid as a result of its dire monetary situation.
Below this proposal, Vi’s adjusted gross income (AGR) dues might be decreased by greater than Rs 52,000 crore, Bharti Airtel’s by practically Rs 38,000 crore, and Tata Teleservices’ by roughly Rs 14,000 crore.
The AGR challenge originated from the Supreme Court docket’s October 2019 ruling, which upheld the federal government’s interpretation of AGR, resulting in dues of Rs 1.47 lakh crore for telcos, together with Rs 92,642 crore in license charges and Rs 55,054 crore in spectrum utilization expenses. Notably, 75% of those dues had been attributed to curiosity, penalties, and curiosity on penalties.
Vodafone Concept, notably burdened by these dues, faces questions on its survival, with repayments scheduled to start in FY26. As of March 2025, business estimates place Vi’s AGR dues at Rs 80,000–85,000 crore, Bharti Airtel’s at Rs 42,000–44,000 crore, and Tata Teleservices’ at Rs 17,000–19,000 crore.
Vi’s CEO, Akshaya Moondra, disclosed in September 2024 that the corporate had reopened discussions with the federal government after the Supreme Court docket rejected a healing petition for AGR re-computation.
In December 2024, the federal government eased Vi’s monetary pressure by waiving the requirement for financial institution ensures on previous spectrum dues, liberating up Rs 24,800 crore and enabling extra credit score from lenders.
If authorized, this newest proposal might present a essential lifeline to Vodafone Concept, deliver stability to India’s telecom sector, and promote truthful competitors amongst operators.
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