In a significant relief for debt-laden Vodafone Idea, the Union Cabinet on Wednesday approved a support package that puts a large portion of the telecom operator’s adjusted gross revenue (AGR) dues on hold. According to reports, AGR liabilities worth ₹87,695 crore have been frozen as of December 31.
These dues will not require immediate payment and will instead be repaid over a 10-year period, beginning in FY32 and extending until FY41.
The frozen amount will be reassessed at a later stage by the Department of Telecommunications (DoT) and may be revised based on deduction verification guidelines and audit reports.
A government-appointed committee will take the final decision on the reassessed dues, a process expected to offer Vodafone Idea greater flexibility in managing its long-term financial obligations.
However, the relief does not extend to AGR liabilities for FY18 and FY19. These dues, already finalised under a 2020 Supreme Court order, will remain unchanged and must be paid between FY26 and FY31 in line with the existing repayment schedule.
The Cabinet’s decision is aimed at safeguarding the government’s nearly 49% stake in Vodafone Idea, ensuring an orderly recovery of dues, preserving competition in the telecom sector, and protecting the interests of nearly 20 crore subscribers nationwide.
Following the announcement, Vodafone Idea’s shares came under pressure. At around 3:05 pm, the stock was trading near ₹10.8 on the National Stock Exchange, down 10.36%.