Vodafone Idea Share Price: Shares of Vodafone Idea surged nearly 4% on Friday, January 2, after reports suggested that the company’s adjusted gross revenue (AGR) dues could be sharply reduced following
a reassessment by a Department of Telecommunications (DoT) committee.
The stock climbed to Rs 12.05 apiece, extending gains for a second straight session. Separately, another report indicated that the AGR relief package recently cleared by the Union Cabinet could pave the way for the government’s eventual exit from the telecom operator.
DoT may slash Vodafone Idea’s AGR dues
According to an Economic Times report citing government officials, Vodafone Idea has effectively received a 10-year breather to pay over 95% of its AGR dues. Officials said the frozen dues of Rs 87,695 crore could be cut by more than 50% after a reassessment by the DoT. Whatever final amount is determined would be payable between FY36 and FY41.
“The government has essentially given Vodafone Idea the time it needs to recover,” an official told the publication.
News18 could not independently verify the report.
Is the government preparing to exit Vodafone Idea?
The Indian Express reported, citing people familiar with the matter, that the AGR relief package approved by the Union Cabinet may have set the stage for a possible government exit from the debt-laden telco. The report added that the entry of a private sector investor is also under consideration.
According to the report, the Cabinet’s decision to freeze AGR dues of Rs 87,695 crore for five years provides visibility on future liabilities—a key precondition for potential private investors. Two large corporate groups have reportedly shown interest in investing in Vodafone Idea at different points in time.
However, the report noted that the government would exit only if it can sell its stake at a profit, and no final decision has been taken yet.
News18 could not independently verify this report.
The government became Vodafone Idea’s largest shareholder in March after converting dues worth Rs 36,950 crore into equity, raising its stake to nearly 49%. Earlier, in 2023, the Centre had acquired a 33% stake in exchange for statutory dues of over Rs 16,000 crore.
Cabinet approval for AGR relief package
Sources told Moneycontrol that the Union Cabinet has approved an AGR relief package for Vodafone Idea, granting a five-year moratorium on its AGR dues. A DoT committee will be constituted to reassess and revalue the dues, including a review of interest and penalties, if any.
As part of the decision, AGR dues worth Rs 87,695 crore have been frozen, with repayments rescheduled between FY32 and FY41. Dues pertaining to FY18 and FY19 will be payable over the next five years, the report added.
