The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a relief package for Vodafone Idea, freezing its adjusted gross revenue (AGR) dues at ₹87,695 crore, PTI reported on Wednesday, citing sources.
The frozen dues will be payable over a 10-year period from FY32 to FY41. According to the report, Vodafone Idea’s AGR dues have been frozen as of December 31 and will now be reassessed by the Department of Telecommunications. However, AGR liabilities related to FY18 and FY19 will remain unchanged and will be payable between FY26 and FY31.
The move is expected to provide immediate relief to the debt-laden telecom operator, which has been struggling under mounting statutory liabilities and persistent cash flow stress. An official government announcement, as well as Vodafone Idea’s response, is awaited.
Shares of Vodafone Idea were trading nearly 15% lower at ₹10.25 on the NSE as of 2:30 pm.
Vodafone Idea currently owes around ₹83,400 crore in AGR dues, with annual payments of nearly ₹18,000 crore scheduled to begin from March 2025. The company has repeatedly warned that it may not survive without additional funding support, as banks remain cautious about lending due to its weak financial position.
The operator, a joint venture between the Vodafone Group and the Aditya Birla Group, employs over 18,000 people and serves nearly 198 million subscribers. Its financial troubles stem largely from heavy debt, spectrum liabilities, and AGR dues following the Supreme Court’s 2019 verdict that broadened the definition of AGR.
In a significant development earlier this year, the Supreme Court allowed the government to comprehensively reassess and reconcile Vodafone Idea’s dues—including interest and penalties—up to FY17, a move widely seen as a major relief for the struggling telecom firm.
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