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Vi stock surges on govt extending AGR payment timeframe to 20 years

Shareholders of Vodafone Idea may yet get to breathe a sigh of relief as the Indian government is preparing the highly anticipated telecom relief package, doubling the adjusted gross revenue (AGR) dues payment timeframe to 20 years from 10 years.

The company’s stock surged by over 4% as of 2:00 p.m., on August 23, after a report by The Ken stated that the government intends to pass an ordinance to increase the AGR dues payment timeframe.

The company’s shares closed up nearly 1% at the end of the trade today.

Vodafone Idea share price. BSE / Business Insider India / Flourish

The report quotes an unnamed source stating that the government is exploring this possibility at the moment.

It is worth noting that the Department of Telecommunications (DoT) had advocated for a 20-year repayment timeline in July last year, during the final submissions in the AGR dues case. Telcos, on the other hand, were fine with a 15-year repayment schedule.

However, the Supreme Court stuck to its stance of a 10-year timeframe, leaving the government, and the telcos’ requests unrequited.

To nullify this and help the ailing telecom sector, the government could go the ordinance route, the report added, quoting an unnamed source.

Business Insider has reached out to the government and the Department of Telecom for a statement. Business Insider

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