Vodafone Idea announced that its adjusted gross revenue (AGR) dues for the period FY 2006–07 to FY 2018–19 will be frozen from December 31, 2025. The telecom operator will repay this liability through staggered instalments until 2041.
The company disclosed that it will make annual payments of Rs 124 crore for six years starting from March 2026 to March 2031. Following this, it will pay Rs 100 crore annually from March 2032 to March 2035. The remaining AGR dues will be settled in equal annual instalments from March 2036 to March 2041.
Vodafone Idea mentioned in an exchange filing that the Department of Telecommunications (DoT) will form a committee to reassess the AGR liability. The decision of this committee will be deemed final, as stated by the debt-laden telecom operator.
Vodafone Idea has been facing financial challenges due to intense price competition and high debt, exacerbated by the redefinition of AGR. The company has experienced losses, a decrease in its subscriber base, and limitations in network expansion investments, while competitors have been advancing their 4G and 5G deployments.
The relief measures endorsed by the Union Cabinet aim to safeguard the government’s interests, ensure the orderly payment of dues to the Centre, maintain competition in the sector, and protect the concerns of Vodafone Idea’s 20 crore consumers, according to analysts.
