Telecom Stocks Gain On Govt’s Relief Measures Reports

On Friday, shares of Vodafone Idea surged as much as 38 percent while Bharti Airtel rose 10 percent after an Economic Times report citing sources said that the Union Cabinet has approved a relief package for the financially-troubled telecom companies amid concerns over their ability to clear AGR (adjusted gross revenue) dues.

The report said that the Department of Telecommunications (DoT) would be reviewing statutory AGR dues based on documents submitted by the telecom operators and issued revised demand notices for pending liabilities.

Earlier this week, the Minister of State for Communications, informed the Lok Sabha in a written reply that the government has received part payment of about Rs 25,900 crore from telecom operators towards statutory dues. It has also directed telcos to make full payments.

The minister informed the lower house that so far, Bharti Airtel has paid Rs 18,004 crore and Vodafone Idea has shelled out Rs 3,500 crore.

Tata Teleservices has paid about Rs 4,197 crore, while Rs 3.9 crore has been received from Reliance Communications. Reliance Jio has paid about Rs 195 crore.