Govt Working on Relief Mechanism for Vodafone Idea Amidst Mounting AGR Dues: Report

The government is working on a mechanism to extend relief to cash-strapped telecom operator Vodafone Idea (Vi), which has sought a waiver of Rs 45,000 crore from its adjusted gross revenue (AGR) dues, Minister of State for Communications Pemmasani Chandrasekhar said in an interview with The New Indian Express. Chandrasekhar stated that the government remains committed to maintaining a healthy telecom ecosystem and is holding discussions at the highest levels, including with the Prime Minister and the Cabinet, to find a viable solution.

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Also Read: Banks Hesitant to Extend Fresh Loans to Vodafone Idea After AGR Verdict

Government in Talks to Support Vi

According to the report, the minister said it is the government’s duty to protect the ecosystem and that they want companies to flourish, not to die.

“So, this is something the Honorable Prime Minister, Cabinet, and entire ministry have been discussing and will continue to discuss. And obviously, we want the companies to flourish; we don’t want them to die. We want to have effective competition, but at the same time, we have to make sure we don’t give away everything that they ask… Obviously, after the discussion, we will work on some mechanisms to help (Vodafone Idea),” the minister was quoted as saying.

Also Read: Communications Minister Rules Out AGR Relief, Says Vodafone Idea Must Stand on Its Own

Vodafone Idea, India’s third-largest telecom service provider, has AGR dues amounting to Rs 83,400 crore. It has approached the Department of Telecommunications (DoT) seeking a waiver of over Rs 45,000 crore, which includes interest, penalties, and interest on penalties. The telco warned that it may not be able to continue operations beyond FY26 without government intervention, and failure to secure relief could force it into insolvency under the National Company Law Tribunal (NCLT).