The government is likely to offer an interest-free moratorium of four to five years to Vodafone Idea Ltd (Vi) on over Rs 83,000 crore of its pending statutory dues related to adjusted gross revenue (AGR), offering immediate relief to the cash-strapped telecom operator, people familiar with the matter said, according to an Economic Times report by Kiran Rathee dated December 15, 2025.
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Interest-Free Moratorium to Provide Immediate Relief
Following the moratorium period, the company will be required to repay the dues in six instalments. However, the overall liability is expected to be substantially reduced—possibly by nearly half—after a reassessment of the amounts payable, sources were quoted as saying.
Government Panel to Reassess AGR Dues
To facilitate the reassessment, the government is expected to constitute a committee headed by a secretary-level official, either serving or retired. The panel will hear representations from both the Department of Telecommunications (DoT) and Vodafone Idea before arriving at a final determination of the payable amount.
"A committee will be formed, headed by a secretary-level official, either serving or retired, which will hear the views of both, the telecom department and Vi," one of the sources was quoted as saying.
Cabinet Approval Awaited
The proposal is awaiting Cabinet approval and is likely to be announced in the coming weeks. It will then “take a call around the final amount that has to be paid,” the person cited above said, according to the report.
Under the existing repayment schedule, Vodafone Idea is required to pay more than Rs 18,000 crore in March next year as the first instalment following the end of an earlier moratorium granted in 2021. That relief was not interest-free, resulting in a steady increase in the outstanding dues. Telecom operators (Vi and Bharti Airtel) currently pay 29–30 percent compound interest annually on their AGR liabilities, an unnamed industry expert was quoted as saying.
AGR Dues Rooted in 2019 Supreme Court Ruling
The AGR dues stem from a 2019 Supreme Court judgment that upheld the DoT’s definition of adjusted gross revenue, which includes non-telecom income, and mandated telecom companies to pay licence fees and spectrum charges accordingly.
Relief Expected to Apply Only to Vodafone Idea
Under the proposed relief package, Vodafone Idea’s outstanding AGR liability would be frozen, with no further interest accrual. The benefit is expected to be limited to Vi, while rival Bharti Airtel is likely to continue paying its dues as per the existing schedule.
"Under the upcoming relief package, Vi’s outstanding amount will be sealed, and no accrual of interest will happen in future," the people cited earlier said, according to the report.
Vodafone Idea has repeatedly flagged its inability to meet AGR obligations and has sought government support. The Centre is the company’s largest shareholder, holding a 48.99 percent stake after converting part of Vi’s dues into equity. Last month, the Supreme Court allowed the government to design a special relief package for the operator covering its entire AGR liability.
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Resolution Could Enable Fundraising
Resolution of the AGR issue could enable Vodafone Idea to raise fresh capital, including its proposed Rs 25,000-crore equity issuance. A successful fundraise would dilute the government’s shareholding and could allow further conversion of dues into equity, providing additional financial headroom.
Aditya Birla Group and Vodafone Group Plc currently hold 9.50 percent and 16.07 percent stakes, respectively, in the company. According to a previous report, US-based private equity firm Tillman Global Holdings is in talks to invest USD 4–6 billion (Rs 35,000–52,800 crore) in Vodafone Idea and assume operational control, contingent on regulatory relief, with other investors also likely to show interest thereafter.
