Shares of Vodafone Idea Ltd (VI) tumbled 9% after hitting a day’s high of Rs 7.13 on 26th August. Meanwhile, Indus Towers also slipped as investors sold off following the Telecom Ministry’s clarification on the company’s AGR dues.

Minister of State for Communications Pemmasani Chandra Sekhar stated that there are no plans to provide Vodafone Idea (Vi) with any additional relief on adjusted gross revenue (AGR) dues. He mentioned that the government has already converted a significant portion of the company’s debt into equity. Any further decision would have to be taken collectively by the Union Cabinet. This involves the PMO, Finance Ministry, Telecom Minister, and DoT.

Reports last week suggested that the DoT had proposed options. These included a fresh two-year moratorium on AGR payments, smaller instalments, and waivers on penalties and interest. However, the minister denied that any such proposal was under consideration.

Vi has requested the DoT to treat Rs 17,213 crore (principal up to FY19) as final. Moreover, they are seeking a waiver on all interest and penalties.

CEO Akshaya Moondra recently told analysts that the company is focusing on investing in its business. All available funds and cash generation are directed toward growth rather than government holdings. He said Vi is engaged with banks for funding. But lenders are seeking clarity on AGR dues before proceeding.

Moondra also noted that the government has supported the telecom sector in the past. He cited measures such as spectrum payment deferments, reform packages, and conversion of dues into equity. He added that Vi has requested the government to resolve the AGR issue ahead of the March deadline. This would give banks the confidence to move forward with funding.

At 1:47 PM, the shares of Vodafone Idea (VI) were trading 8.65% lower at Rs 6.76 on NSE.

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