Corporate Updates
The Union Cabinet has approved a five‑year freeze on Vodafone Idea’s AGR dues, totaling around ₹87,695 crore.
Payments will be deferred until 2031‑32, with remaining 2017‑18 and 2018‑19 liabilities due by 2030‑31.
The move aims to ease financial pressure on the struggling operator and protect competition, while the government retains its 49 per cent stake in the company.
Vodafone Idea shares gained nearly 4 percent in trade after its subsidiary raised Rs 3,300 crore through Non-Convertible Debentures (NCDs), signalling improved market confidence in the telecom operator.
The fundraise was carried out by Vodafone Idea Telecom Infrastructure Limited, a wholly owned arm of the company. The NCDs, which are unlisted, unsecured and unrated, saw strong demand from institutional investors, including NBFCs, alternative investment funds and foreign investors, indicating healthy appetite despite the company’s financial challenges.
According to regulatory disclosures, the money raised will be used by the subsidiary to meet its payment obligations to Vodafone Idea, helping the parent company strengthen liquidity. The improved cash position is expected to support capital expenditure and network expansion, which remain critical for improving service quality and competitiveness.
Market participants view the successful bond issue as a positive step in Vodafone Idea’s ongoing efforts to stabilise operations and strengthen its balance sheet, leading to renewed buying interest in the stock.
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Vi Business, the enterprise division of Vodafone Idea, has launched smart gas meters for City Gas Distribution (CGD) companies. The new solution uses digital technology to help gas companies manage usage more efficiently and reduce losses.
The meters are powered by Narrowband IoT (NB-IoT), a technology that allows them to send data reliably, even from hard-to-reach areas. This means gas companies can now track usage in real-time, quickly detect leaks or theft, and ensure accurate billing. It also reduces the errors that happen with manual meter readings.
‘Lost and Unaccounted Gas’ (LUAG) is a major problem in the gas industry. It happens when gas is lost due to leaks, theft, or incorrect readings. Smart meters can help fix this problem by giving accurate information instantly.
The CGD sector in India is growing fast and is expected to use nearly one-third of the country’s total natural gas in the next few years, according to the Petroleum and Natural Gas Regulatory Board (PNGRB). As the industry grows, digital tools like smart meters are becoming essential to make operations smoother and more reliable.
Arvind Nevatia, Chief Enterprise Business Officer at Vi Business, said, “Smart gas meters are changing the way utilities operate. Our solution helps gas companies save costs, reduce losses, and make billing more accurate for consumers.”
The new smart meters are part of Vi Business’s larger effort to bring digital solutions to India’s energy sector. They are designed to grow with the company’s needs, making it easy for gas operators to upgrade their systems in the future.
With these meters, CGD companies can improve safety, reliability, and customer trust. By combining technology with practical insights, Vi Business aims to support India’s gas sector as it becomes more digital and efficient.
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Vodafone Idea’s share price gained close to 4% on Tuesday as renewed expectations of relief on its long-pending adjusted gross revenue (AGR) dues lifted market sentiment. The stock touched around ₹10.3 during the day, extending the momentum it has seen over recent months.
The rally followed fresh comments from the Telecom Minister, who confirmed that the government is actively reviewing the company’s AGR liabilities. He said a final decision could come by the end of the year, though it would have to remain within the boundaries laid down by the Supreme Court. The government has also indicated that it is waiting for a formal relief request from Vodafone Idea before moving ahead.
The optimism is rooted in a recent Supreme Court ruling that allowed the Centre to re-examine Vodafone Idea’s AGR demands, including interest and penalties, up to the financial year 2016–17. This judgment opened a window for possible reassessment of the dues, which have weighed heavily on the company for years.
For Vodafone Idea, any relaxation, whether through reduced penalties, a recalculation of dues, or staggered payment options, could significantly ease financial pressure. The telecom operator has been battling a massive AGR burden that runs into tens of thousands of crores, straining cash flows and limiting its ability to invest in network expansion.
The company has also indicated that banks have begun reassessing its long-term funding proposals in light of the court’s direction and the government’s ongoing review. This has contributed to improved investor confidence, reflected in the stock’s strong performance over the last three and six months.
However, uncertainty still hangs over the outcome. No formal relief package has been announced so far, and it remains unclear whether the government will offer broad-based relief or restrict changes only to certain components of the dues. Market analysts caution that while the signals are positive, the final decision will determine Vodafone Idea’s long-term outlook.
For now, the stock is riding on expectations. Investors are hopeful—but the company’s future hinges on what the government ultimately decides.
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