Verizon Communications Inc and Amazon.com Inc may invest more than $4 billion for a stake in India’s Vodafone Idea Ltd. Shares of Vodafone Idea climbed 14 percent in Thursday’s trade amid a media report suggesting that retailer Amazon and wireless carrier Verizon Communications were looking to invest over $4 billion for a stake in the telecom operator.

On Tuesday, In the case of Adjusted Gross Revenue (AGR), the Supreme Court has given a big relief to the telecom companies while giving the verdict. They have got 10 years to pay the AGR dues.

Supreme Court extends the time for repayment. Firms get an extension of 10 years to clear outstanding dues. 10% dues to be paid by March 2021. The Supreme Court finished hearing the AGR case on August 24. The court has given 10 years’ time to the telecom companies for payment of AGR due to the Coronavirus Epidemic.

Also Read:Telecom companies get big relief:Firms get an extension of 10 years to clear outstanding dues

Telecom companies will have to pay the AGR installment on February 7 every year. The payment timeline will start from 1 April 2021. A bench headed by Justice Arun Mishra has allowed to submit an affidavit to pay AGR dues. If companies default on payments during these 10 years, then interest and penalty will have to be paid.

As per Reports, the adjusted gross revenue (AGR) is the usage and licensing fees charged by the Department of Telecommunications (DoT) from telecom companies. It has two parts – spectrum usage charge and licensing fees, which are 3-5 percent and 8 percent respectively. The telecom department states that AGR should be calculated based on the total revenue generated by a telecom company, including income from non-telecom sources such as deposit interest and asset sales.

Vodafone Shares paused because the outcome of a Supreme Court case on staggered payments of government dues was uncertain and could have threatened the survival of Vodafone Idea.

Vodafone Idea will have to pay over Rs 50,000 crore as the AGR dues in the next ten years. The financially struggling telco’s board will be meeting on September 4 to discuss raising funds.

 

As per the Company Report, a staggering loss of ₹25,460 crore in the June quarter due to one-time charges, including provisions to cover payments due to the government. According to the Telecom Regulatory Authority of India data, Bharti Airtel Ltd and Vodafone Idea lost 4.7 million subscribers each in May, while Reliance Jio Infocomm Ltd added 3.7 million users in the month.

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