The Union Cabinet approved a plan on December 31 to freeze Vodafone Idea Ltd’s adjusted gross revenue dues at Rs 87,695 crore as of that date. They will reschedule repayment over the fiscal years 2032 to 2041. Additionally, a government-appointed panel will reassess these dues, according to unnamed officials.
The Department of Telecommunications (DoT) will review the dues based on deduction verification guidelines and audit findings. A committee will determine the final payable amount, and this ruling will bind both the company and the government.
Vodafone Idea relief
Officials noted that the decision to provide relief aims to serve the public interest and prevent excessive concentration in the telecom sector. This move follows the Supreme Court’s comments that the government reconsider AGR-related issues, considering the interests of 20 crore consumers.
According to the Cabinet’s decision, Vodafone Idea’s AGR dues, frozen as of December 31, 2025, at Rs 87,695 crore paid over the fiscal years 2031-32 to 2040-41. The company must pay AGR dues from FY18 and FY19 over the next five years.
The Department of Telecommunications reassess the frozen AGR dues as of December 31, 2025, following the Deduction Verification Guidelines dated February 3, 2020, and based on audit reports, sources said.
Protects India’s 49% equity stake
Officials also mentioned that these steps will help protect the Government of India’s 49% equity stake in Vodafone Idea and allow for the orderly payment of dues.
Vodafone Idea has faced challenges with its dues. The heavily indebted operator has repeatedly stated it cannot survive without financial support, as banks are hesitant to lend due to its financial difficulties. Vodafone Idea employs over 18,000 people and has nearly 198 million subscribers.
A few weeks ago, the Supreme Court permitted the government to reassess and reconcile all dues of the struggling telecom company, including interest and penalties, up to FY17. This decision was viewed as significant relief for the financially strained operator.
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