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Vodafone Idea’s stock hit 10% upper circuit after the Supreme Court clarified that the government can consider relief on both additional and reassessed AGR dues.
Context: the top court cleared years of confusion for the struggling telco. AGR, or Adjusted Gross Revenue, is the amount on which telecom operators pay license fees and spectrum charges to the government.
The dispute began when telcos argued that only core telecom revenue should be included, while the government insisted all income should count. The difference left Vodafone Idea saddled with over ₹80,000 crore in dues, a crisis that’s dragged on for years.
What now: SC’s clarification means the Centre can now review Vodafone Idea’s dues, including the ₹9,500 crore in additional demands, without legal roadblocks. This opens the door for potential relief, something crucial for the company’s survival and its 20 crore subscribers.
The ripple effect: the optimism spread across the telecom sector with Bharti Airtel gaining 1%, Bharti Hexacom turned positive, and Indus Towers, a major Vodafone Idea creditor, climbed 4% on hopes of improved payments.
