Vodafone Idea Seeks Further Government Support Amid AGR Dues Pressure: Report

Indian telecom service provider Vodafone Idea (VIL) has sought additional relief from the government as it faces mounting financial pressure to repay its adjusted gross revenue (AGR) and spectrum dues, NDTV Profit reported.

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Also Read: Govt Drops AGR Dues Waiver Plan, Deems Relief to Private Firms Unjust: Report

In a letter to Telecom Secretary Neeraj Mittal on March 11, VIL requested a further conversion of its dues into equity. If approved, the government’s stake in the company could rise from 22.6 percent to 49 percent, sources said, as per the report.

Mounting Dues and Financial Woes

Vodafone Idea currently owes Rs 36,950 crore in AGR and spectrum dues and must immediately pay Rs 13,089 crore in the coming weeks. The company has stated it lacks the ability to make these payments and is seeking relief under the 2021 Telecom Relief Package, the report quoted sources as saying.

The request comes amid reports that the government has rejected any waiver on AGR dues. A proposed reduction in AGR liabilities could have offered Vodafone Idea Rs 52,000 crore in relief, cutting its total debt by 25 percent.

Also Read: Vodafone Idea Fails to Provide Rs 6,090 Crore Bank Guarantee to DoT: Report

Legal Setback and Prior Government Support

In July 2024, VIL had approached the Supreme Court for a review of its AGR dues calculation but faced a setback in September 2024 when the court dismissed its plea.

This is not the first time Vodafone Idea has sought government support. In February 2023, the government converted Rs 16,133 crore of dues into equity, initially holding 33.44 percent of the company. However, after Vodafone Idea’s Rs 18,000 crore follow-on public offer (FPO) in April 2023, the government’s stake was diluted to 22.6 percent.