In a significant development, the Union Cabinet has granted a relief package to debt-ridden Vodafone Idea by freezing a substantial portion of its adjusted gross revenue (AGR) dues. The frozen amount, totaling Rs 87,695 crore as of December 31, will not require immediate payment but will be spread over a decade, from the financial year 2031–32 to FY41. The Department of Telecommunications (DoT) will reevaluate this frozen sum at a later stage.
The relief package excludes AGR liabilities from FY18 and FY19, which must be settled by Vodafone Idea between FY26 and FY31 following the current repayment schedule. The telecom department will review the frozen AGR dues based on Deduction Verification Guidelines and audit reports, providing Vodafone Idea with some flexibility in managing its long-term financial obligations. A government-appointed committee will make the final decision on the reassessed amount.
The Cabinet’s decision aims to safeguard the government’s nearly 49% stake in Vodafone Idea, ensure a structured repayment of dues, sustain competition in the telecom industry, and protect the interests of approximately 20 crore Vodafone Idea subscribers nationwide. Notably, AGR dues for FY18 and FY19, already determined by a 2020 Supreme Court order, remain payable without any relief. Following this announcement, Vodafone Idea’s stock faced pressure in the market, trading around Rs 10.8 on the National Stock Exchange (NSE) at approximately 3:05 pm.
