Tata Teleservices (Maharashtra) led the rally, surging 14%, while Mahanagar Telephone Nigam jumped 12%. Vodafone Idea, heavily impacted by the AGR issue, saw its shares climb 9.32%. Indus Tower and Bharti Airtel also registered gains, with increases of 3.55% and 1%, respectively.
The reported that the government is exploring a proposal to waive 50% of the interest accrued on AGR dues and 100% of penalties and interest on those penalties. This move aims to provide relief to the beleaguered telecom sector, particularly companies like Vodafone Idea, which have been grappling with a significant debt burden.
The AGR issue stems from a 2019 Supreme Court ruling that upheld the government's definition of AGR, leading to the imposition of Rs 1.47 lakh crore in dues on telecom operators, including substantial interest and penalties. This financial burden has severely impacted the sector's viability.
Reports indicate that the government is working towards announcing this relief measure in the upcoming Union Budget (2025-26). Vodafone Idea, facing the imminent start of AGR repayments in the current fiscal year, has been actively engaging with the government on this matter.