Vodafone Idea’s shares surged nearly 9% on October 7, climbing to an eight-month high and extending their rally to over 50%. The development has been marked by several factors as speculations are rife that the central government is considering a one-time settlement of its longstanding demand for billions of dollars in past-due fees from the firm, as the government seeks to strengthen ties with the UK. The report stated that resolution in the nearly ₹2 lakh crore financial dispute may come through a waiver of interest and penalties, followed by a concession on the principal.
The counter saw strong participation, with more than a billion shares traded across exchanges. At 1:30 PM, the stock was up 7 per cent at Rs 9.05, adding to a sharp recovery of over 40 per cent from its August lows. The rally also comes ahead of UK Prime Minister Keir Starmer’s India visit on October 8-9, where he is scheduled to meet Prime Minister Narendra Modi in Mumbai, fuelling speculation about progress in talks related to the debt-laden telecom operator, once the Indian arm of Vodafone Group Plc.The Department of Telecommunications (DoT) has also raised an additional demand of ₹2,774 crore for FY18-19. Of the ₹9,450 crore total demand, about ₹5,675 crore pertains to pre-merger Vodafone Group liabilities, while ₹2,774 crore relates to the post-merger entity. Vodafone Idea has contested these calculations, alleging duplication of certain amounts.
Vodafone Idea owes nearly ₹83,400 crore in AGR dues, and the annual payments currently stand at ₹18,000 crore, scheduled from March 2026. When combined with interest and penalties, Vodafone Idea’s dues stand at more than ₹2 lakh crore.As per the report, one of the relief options is an additional two-year pause on paying the statutory dues under moratorium at present. The DoT has proposed to give the company extra time to pay its dues, along with smaller annual payouts and a waiver on penalties and interest penalties on AGR payment.