Vodafone Idea Could Get 4–5 Year Moratorium on AGR Dues, Liabilities May Drop Nearly 50%

Vodafone Idea Could Get 4–5 Year Interest-Free AGR Moratorium, Liabilities May Be Halved.

The government is considering granting Vodafone Idea (Vi) a four- to five-year interest-free moratorium on over ₹83,000 crore of pending AGR-linked dues, providing critical relief to the debt-laden telecom operator, according to The Economic Times.

After the moratorium, Vi would repay the dues in six instalments, with total liabilities expected to fall by nearly half following a reassessment. A committee headed by a secretary-level official will review submissions from Vi and the Department of Telecommunications (DoT) before finalising the amount. The proposal awaits Cabinet approval.

Currently, Vi faces its first instalment of ₹18,000 crore in March 2026, paying roughly 29–30% compound interest annually. Under the proposed plan, dues would be frozen with no further interest, while Bharti Airtel continues payments as scheduled.

The relief could enable Vi to raise fresh capital, including a planned ₹25,000-crore equity infusion, potentially attracting investments from Tillman Global Holdings and other investors, while diluting the government’s 48.99% stake.