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Good news for Vodafone Idea, parent company may invest.



New Delhi: Vodafone plc may invest some new capital in Vodafone Idea to meet operational requirements and adjusted gross revenue (AGR) arrears. For your information, let us know that Vodafone Idea is a joint venture (JV) company between Vodafone Group and Aditya Birla Group. Along with Vodafone, Aditya Birla Group can also invest in Vodafone Idea to save it from drowning.


The Vodafone Group can invest $ 20–22.5 million in Vodafone Idea and the Aditya Birla Group for $ 15–15 million. On behalf of these two groups, these investments can be made through preference capital or redeemable preference shares.


Aditya Birla Group will invest in such a way, according to a report in Economic Times, most of the funds of Aditya Birla Group are likely to be raised through private units of its chairman Kumar Mangalam Birla. Explain that Vodafone Idea owes AGR of more than Rs 58,000 crore according to the estimate of Department of Telecommunications, of which the company has paid some share. Let us know that from Vodafone, many times since last year, there have been indications of closure of the company if the government does not get relief in AGR case.


What happens AGR charge Adjusted gross revenue or AGR is a usage and license fee, which the Department of Telecommunications charges from telecom companies. There has also been controversy over this. The Department of Telecommunications has been saying that AGR should be calculated on the total income including interest or deposits sold to a telecom company. But the telecom companies only talk about calculating AGR on telecom services income.

In 2005, the Cellular Operators Association of India turned to TDSAT opposing this definition, but TDSAT considered AGR calculations to be correct on all types of income. Then the Supreme Court also accepted this definition as correct.

Tell AGR's great pressure on Vodafone that telecom sector experts have said many times that the financial position of Vodafone Idea is the most fragile among the three major telecom companies. Due to AGR, Vodafone has indicated to expand its business several times. If Vodafone closes its business, then only big private companies will remain in the market i.e. Jio of Bharti Airtel and Reliance Industries.

However, the government has said many times that all the three companies in the telecom sector have been retained. Significantly, due to the lock down people are working from home. In such a situation, it has become a major responsibility of the government to continue and activate the telecom services. Therefore, the Department of Telecommunications has temporarily sided with AGR dues related matters. Which has given some relief to the telecom companies.

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