The government may announce a partial waiver of AGR dues in the Budget on February 1st, according to sources that caused shares of state-owned MTNL and Tata Teleservices (Maharashtra) to surge up to 12%. According to ET, the proposal will provide telecoms with financial relief of more over Rs 1 lakh crore by waiving 50% of interest and 100% of penalties and interest on penalties.
The government may be considering a significant waiver of adjusted gross revenue (AGR) dues, according to media reports, which caused shares of five telecom companies to jump from 1% to 14%. The rally was headed by Tata Teleservices (Maharashtra), which surged 14%, and Mahanagar Telephone Nigam, which soared 12%. Because of the AGR problem, Vodafone Idea’s stock increased 9.32%. Bharti Airtel and Indus Tower both saw increases, rising 1% and 3.55%, respectively.
Proposed Waivers on AGR Dues and Penalties
The reports state that this new relief plan calls for waiving 100% of penalties and interest on penalties, as well as 50% of interest on AGR dues. Given its extreme financial difficulties, Vodafone Idea stands to gain the most from the potential over Rs 1 lakh crore in financial relief for the telecom industry if this deal is finalized. In particular, AGR dues for Vi, Bharti Airtel, and Tata Teleservices might all be lowered by more than Rs 52,000 crore, Rs 38,000 crore, and Rs 14,000 crore, respectively.
Reliance Jio is not impacted by the proposed policy and does not have any legacy unpaid AGR dues. Tata Tele currently only offers commercial mobility services; it no longer offers retail mobility services.
About the Company
Founded in 1995, Tata Teleservices (Maharashtra) Ltd. is headquartered in D-26 TTC Industrial Area, MIDC Sanpada P O Turbhe, Navi Mumbai, Maharashtra. The primary sector in which Tata Teleservices (Maharashtra) Ltd works is the service provider sector of telecommunications.
In addition to having a unified license and access service authorization in Maharashtra and Goa, Tata Teleservices Ltd. is an Internet service provider that specializes in offering a range of wireline voice, data, and managed telecom services.
