Govt May Slash AGR Dues for Vodafone Idea, Airtel; PMO Reviews Relief Proposal: Report

Govt May Slash AGR Dues for Vodafone Idea, Airtel; PMO Reviews Relief Proposal
In a major relief for Indian telecom operators Bharti Airtel and Vodafone Idea (Vi), the central government may slash their Adjusted Gross Revenue (AGR) dues. The Prime Minister’s Office (PMO) has reviewed the latest proposal from the Department of Telecommunications (DoT) on AGR relief, NDTV Profit reported on Friday, August 22, 2025, citing sources.

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Vodafone Idea’s Dues and Government Stake

If approved, Vodafone Idea’s AGR dues are likely to be reduced to Rs 28,000 crore from Rs 83,400 crore, according to the report. The government had previously converted part of the company’s dues into equity. Following the conversion of outstanding spectrum auction dues into equity, the Indian government’s stake in Vodafone Idea has risen to nearly 49 percent. The Aditya Birla Group holds a 9.50 percent stake, and the UK’s Vodafone Group holds 16.07 percent, taking the total promoter holding to 25.57 percent, according to a recent filing.

Meanwhile, Airtel’s AGR dues will likely be reduced to Rs 10,000 crore from Rs 42,000 crore, the report said, citing sources.

Shares Jump on Relief Buzz

Shares of Vodafone Idea jumped on August 22, 2025, after an early morning report published at 6 am on Friday suggested that the PMO is set to decide on a relief proposal for the telecom major.

The PMO has received a proposal from the telecom department to steady Vodafone Idea Ltd, said two officials aware of the matter, as the carrier has repeatedly cited upcoming payments against pending dues as a threat to its survival, LiveMint reported.

DoT Suggests Multiple Relief Options

In an informal note to the PMO last month, the DoT has proposed “multiple relief options”, including a further two-year pause on paying the statutory dues under moratorium currently, one of the two officials cited in the report said. The PMO will take the final decision on whether any relief measures need to be extended, the person added.