Mumbai, Dec 31 Vodafone Idea on Wednesday issued a clarification after media reports claimed that the Union Cabinet had approved a five-year moratorium and frozen the company’s adjusted gross revenue (AGR) dues at Rs 87,695 crore.
In a stock exchange filing, Vodafone Idea said the reports were speculative in nature and that it had not received any official communication confirming such a decision.
“We have not received any communication from the Government in relation to the above reported matter,” the telecom operator stated in its exchange filing.
“As and when there is any development which requires disclosure, we will do the needful,” it added.
The clarification came amid heightened market reaction to the reports. Following the earlier report, Vodafone Idea shares witnessed heavy selling pressure.
The stock slipped as much as 15.01 per cent, or Rs 1.81, to Rs 10.25 during the intra-day trade.
At the closing bell, the shares were at Rs 10.76, down by Rs 1.31 or 10.85 per cent on the Bombay Stock Exchange (BSE).
Earlier in the day, several reports had suggested that the Union Cabinet had cleared a major relief package for the debt-laden telecom operator by freezing AGR dues worth Rs 87,695 crore as of December 31.
According to these reports, the frozen amount was to be repaid over a long period of 10 years, starting from FY32 and continuing till FY41, giving the company breathing space on its stretched finances.
As per the same reports, the frozen dues were expected to be reviewed later by the Department of Telecommunications based on audit findings and deduction verification guidelines.
A government-appointed committee was also expected to take a final call on the reassessed amount.
However, the reported relief did not extend to AGR liabilities related to FY18 and FY19. These dues, finalised under a 2020 order of the Supreme Court of India, are required to be paid between FY26 and FY31 under the existing repayment schedule.
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