The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a relief package for Vodafone Idea, freezing its adjusted gross revenue (AGR) dues of Rs 87,695 crore, which will now be
payable over a 10-year period from FY32 to FY41, according to a PTI report citing sources.
Vodafone Idea’s AGR dues frozen as of December 31 and will be reassessed by the telecom department, the PTI report added. It added that AGR dues pertaining to FY18 and FY19 shall be payable by Vodafone Idea from FY26 to FY31 without change.
The decision provides immediate financial relief to the debt-laden telecom operator, which has been grappling with mounting statutory liabilities and cash flow stress.
An official announcement from the government and the company’s response are awaited.
Shares of Vodafone were trading nearly 10% down at Rs 10.86 apiece on the NSE, as of 2:15 pm.
Vodafone Idea has been struggling with dues, owing about Rs 83,400 crore in adjusted gross revenue (AGR) dues, with annual payments of nearly Rs 18,000 crore scheduled from March 2025
The debt-laden operator has repeatedly warned it cannot survive without funding support, as banks remain wary of lending given its financial stress. Vi employs over 18,000 people and has nearly 198 million subscribers.
Vodafone Idea, a joint venture between the Vodafone Group and the Aditya Birla Group, has been struggling under heavy debt, spectrum liabilities and AGR dues following the Supreme Court’s 2019 verdict on the definition of AGR.
However, few weeks ago, the Supreme Court allowed the government to comprehensively reassess and reconcile all dues of the debt-ridden telecom company, including interest and penalties, up to FY17. This was seen as a major relief for the financially stressed operator.
(The story will be updated)
