The Union Cabinet’s approval of a relief package for Vodafone Idea (Vi), including a moratorium on adjusted gross revenue (AGR) dues, is unlikely to significantly boost lender confidence or translate into immediate fiscal support from banks, according to a Hindu Business Line report dated January 2, 2026, citing industry experts.
Also Read: Vodafone Idea Gets 10-Year Breather on Over 95 Percent of AGR Dues
AGR moratorium provides breathing space
The moratorium, approved on the last day of 2025, freezes Vi’s statutory dues with zero interest and provides an extended repayment timeline. While the move offers temporary relief, analysts caution that it does not fundamentally alter the company’s financial position.
According to the report, Mahesh Uppal, Director of Comm First (India), said the move is good news for the company, its subscribers and taxpayers, particularly as the government holds a 49 per cent stake in Vi. Even the government’s own dues are more secure now, he noted.
Also Read: Govt May Exit Vodafone Idea After Relief Package, Stake Sale in Works
Experts downplay impact on lender sentiment
However, the development is being viewed as over-hyped in terms of its ability to improve bank confidence.
“I don’t think the Cabinet developments will increase chances for bank support. The stock has also not done well after the announcement. It doesn’t change anything. AGR dues won’t go away,” Shriram Subramanian, Founder and Managing Director of InGovern Research Services, was quoted as saying.
During its most recent earnings call, Vi indicated that the success of its fund-raising efforts with banks and non-banking financial companies (NBFCs) would hinge on the nature of the relief package from the Centre.
Also Read: AGR Relief to Vodafone Idea Sparks Similar Demands from ISPs, Non-Telcos
Formal government communication key for banks
The clincher will come once the government sends a formal communication, Vivekanand Subbaraman, telecom analyst at Ambit Capital, told the publication.
“When that intimation comes in, banks may be willing to deal with Vi. Banks are unable to provide long-term loans to companies whose debt isn’t investment grade. However, ICRA and CARE upgraded Vi’s rating for term loans to investment grade in April 2025,” he was quoted as saying.
