Vodafone Idea, Tata Teleservices and Bharti Airtel targeted as center for AGR waiver

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Vodafone Idea, Tata Teleservices and Bharti Airtel targeted as center for AGR waiver

Shares of telecom companies in Monday’s session (January 20) traded with big gains amid reports that the agency is considering scrapping adjusted gross revenue (AGR) fees for telecom companies.

Shares of Vodafone Idea at around 10:52 am were trading over 8 percent higher at Rs 9.86 per share on the BSE, while at the day’s high it touched 10.48 levels, gaining about 15 percent on the day. The stock has been performing despite bearish market sentiment and over the past 5 periods has risen 35 percent- taking today’s high price.

Equivalent shares of Tata Teleservices (Maharashtra) were up nearly 12 percent at Rs 79.43. At the highest level, Tata Tele shares touched Rs 81.48 apiece on the BSE.

Meanwhile, Bharti Airtel shares traded up 0.5 percent at Rs 1,636.2 per share, while the intra-day high was Rs 1,643.5.

It is reported that the government is considering a proposal to give a 50 percent discount on the interest payable on AGR and a 100 percent discount on the fine. This decision, if taken, will provide a huge relief of up to Rs 1 lakh crore to telecom companies.

In October 2019, the Supreme Court of India ruled in favor of the Department of Telecommunications (DoT) and ordered the telecom companies to pay adjusted gross revenue (AGR) of Rs 1.47 lakh crore.

Notably, about 75 percent of the fee includes interest, penalties and interest charges.