India has cleared a five year moratorium on Vodafone Idea’s adjusted gross revenue dues, giving the debt laden telecom operator crucial time to stabilise its finances even as markets reacted nervously to the lack of any waiver.
India has approved a five year moratorium on Vodafone Idea’s adjusted gross revenue dues, offering crucial breathing space but stopping short of any outright waiver.
Relief for Vodafone Idea
The Union government has granted Vodafone Idea a five year pause on payment of its AGR liabilities, effectively freezing dues estimated at around ₹87,695 crore and pushing actual repayments well into the next decade. This follows a Supreme Court order that allowed the Centre to reconsider and rework the company’s AGR obligations, opening the door for this relief package.
Market reaction and company response
Despite the regulatory reprieve, investor sentiment soured after hopes of a partial waiver or deeper write offs were not met, sending Vodafone Idea’s shares down by as much as 15 percent intraday after an initial rise. Market analyst Vinit Bolinjkar of Ventura Securities said the moratorium offers recovery time but falls short of expectations of a broader concession on dues. Vodafone Idea said it would wait for formal government communication and promised to disclose any decision through stock exchange filings, declining to comment on speculative reports.
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