Vodafone Idea (Vi) has technically received a 10-year breather to repay more than 95 per cent of its adjusted gross revenue (AGR) dues under the government’s relief package, giving the financially stressed telecom operator crucial time to stabilise its operations, officials reportedly said.
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Reassessment committee to be formed
The government has frozen Vi’s AGR dues at Rs 87,695 crore as on December 31, officials told The Economic Times, according to a report by Kiran Rathee dated January 2, 2026. A committee will be formed within three to four months to reassess these dues. “After the reassessment, Rs 87,695 crore will go down substantially, and whatever the new amount comes, it has to be paid by FY36 to FY41,” an official was quoted as saying.
Vodafone Idea had earlier sought time until FY41 to clear its AGR liabilities when it approached the Supreme Court. "The government has basically granted the company the necessary time to recover," another official was quoted as saying.
Under the revised payment structure, Vi will pay around Rs 114 crore annually for six years from the current fiscal until FY31, followed by payments of about Rs 100 crore annually for four years until FY35, according to one of the officials cited. As the company is technically paying some amount every year, there is no moratorium in the repayment schedule as such.
However, there is a five-year moratorium on the frozen AGR dues, which are subject to reassessment. During this period, the company must continue paying AGR dues for FY18 and FY19, estimated at Rs 700–800 crore, to be cleared by FY31 through annual instalments of about Rs 114 crore, according to a second official as cited in the report.
Stock rebounds after clarity
"However, after clarity today (Thursday) around the potential of the package, the stock has bounced back," an unnamed analyst was quoted as saying.
The Supreme Court’s landmark AGR ruling in October 2019 covered dues up to FY17. Subsequently, the Department of Telecommunications raised additional demands for FY18 and FY19. In September 2021, the government had granted telecom operators a four-year moratorium on AGR dues up to FY19, which ends this fiscal year.
Under the new framework, Vodafone Idea has received an additional five-year moratorium for AGR dues up to FY17. However, when large-scale AGR repayments begin from FY32, the company will not pay equal instalments initially due to overlapping spectrum payment obligations.
Additional moratorium granted
“The company has to pay Rs 100 crore from FY32 to FY36, and the remaining AGR dues have to be paid between FY36 and FY41,” the second official was quoted as saying.
The first official reportedly stated that by FY36, the majority of Vi's spectrum auction dues would have been paid, and the company would be in a much better financial situation. Overall, the telco has to pay spectrum dues till FY44.
According to the report, the Indian government, which holds a 49 per cent stake in Vodafone Idea, would have been the biggest loser if the company were to collapse. The Aditya Birla Group and Vodafone Group Plc hold 9.50 per cent and 16.07 per cent stakes, respectively.
