NEW YORK, December 31, 2025, 03:54 ET
- India’s cabinet approved a relief package for Vodafone Idea, freezing its AGR dues at 87,695 crore rupees, media reported.
- The frozen amount is set to be paid over FY32–FY41, easing near-term cash pressure on the debt-laden operator.
- Vodafone Idea shares touched a 52-week high earlier on expectations of government relief.
India’s cabinet has approved a relief package for Vodafone Idea, freezing the telecom operator’s adjusted gross revenue (AGR) dues at 87,695 crore rupees and deferring payment to fiscal years 2032 through 2041, the Economic Times reported on Wednesday, citing PTI sources. 1
The decision matters because Vodafone Idea has faced a large statutory bill that has weighed on its ability to raise funding and invest in its network.
It also lands in a market where India’s private telecom sector is led by Reliance Jio and Bharti Airtel, leaving little room for a weakened third operator.
A separate Economic Times report said the cabinet package includes a five-year moratorium on AGR payments and freezes the dues at 87,695 crore rupees, with the frozen amount payable over a 10-year window from FY32 to FY41. (https://m.economictimes.com/industry/telecom/vodafone-idea-gets-big-relief-as-cabinet-freezes-rs-87695-crore-agr-dues-grants-five-year-moratorium/articleshow/126268063.cms)
FY32–FY41 refers to India’s April-to-March fiscal years, implying repayments would start in fiscal 2032-33 and run through fiscal 2041-42.
Adjusted gross revenue, or AGR, is the revenue base used to calculate licence fees and spectrum usage charges telecom firms owe the government. The term is closely watched in India because court rulings broadened what revenue counts, leaving operators with large back payments.
Earlier on Wednesday, the Times of India reported the cabinet was likely to take up Vodafone Idea’s AGR relief request and consider easing interest and penalties linked to the dues. 2
Vodafone Idea shares rose as much as 2.07% to 12.32 rupees, a 52-week high, in early trade on relief expectations, LiveMint reported. In a filing cited by Mint, the company put its AGR liability at 83,400 crore rupees as of March 31, 2025, with annual payments of about 18,000 crore rupees due from March 2026. “The consolidation remains tight, suggesting sellers are getting absorbed rather than dominating,” said Anshul Jain, head of research at Lakshmishree. (https://www.livemint.com/market/stock-market-news/vodafone-idea-share-price-jumps-2-to-fresh-52-week-high-on-likely-agr-relief-by-the-government-today-11767154228011.html)
The government became Vodafone Idea’s largest shareholder in March after converting 36,950 crore rupees of dues into equity, taking its stake to nearly 49%, Moneycontrol reported. It added the company employs more than 18,000 people, has nearly 198 million subscribers and has sought a waiver of penalties and interest on a 9,450-crore-rupee AGR demand raised by the telecom department. (https://www.moneycontrol.com/news/business/vodafone-agr-dues-cabinet-likely-to-have-approved-relief-telco-gets-5-year-moratorium-reports-cnbc-awaaz-13751005.html)
