Vodafone Idea (Vi) has reportedly approached the Centre seeking a fresh computation of its adjusted gross revenue (AGR) liabilities, a move that could substantially reduce its financial burden and improve its funding outlook. The proposal follows a recent Supreme Court order permitting the government to revisit pending AGR demands up to FY 2016-17.
Vi Seeks Fresh Computation of AGR Dues
The telecom operator has requested exclusion of penalties, interest and interest on penalties from the dues, arguing that a reassessment and reconciliation could slash its payable amount by nearly half. Vodafone Idea’s AGR liabilities currently stand at over Rs 83,500 crore as of March 2025.
DoT Received Proposal Seeking Error Correction
"Vodafone Idea is learnt to have shared a proposal with the department of telecommunications (DoT) seeking recalculation of the adjusted gross revenue (AGR) by removal of arithmetical errors and duplication in computation of the dues besides a one-time waiver of penalties and interest on penalties, totalling to Rs 45,000-50,000 crore," according to a Business Standard report by Gulveen Aulakh dated December 7, 2025.
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Enable Vi to Raise Funding
“The recalculation of dues by removing errors and omitting duplications could reduce the liability by nearly half, which would mean that the interest would then become serviceable by the company’s own finances,” one of the sources was quoted as saying in the report. “This will enable Vi to raise funding from banking as well as non-banking revenues," the source added.
Funding Plans Linked to 5G Expansion
The company’s planned Rs 25,000 crore fundraise is integral to its Rs 50,000–55,000 crore capital expenditure plan for launching 5G services, which are essential for maintaining competitiveness in the Indian market.
A favourable decision is expected to ease pressure on the company’s cash flows and support its ongoing 4G and 5G network expansion. It would also strengthen Vodafone Idea’s prospects of securing additional bank and market funding, critical for sustaining operations in India's telecom market.
DoT and Finance Ministry Hold Early-Stage Discussions
The government is assessing Vodafone Idea’s adjusted gross revenue (AGR) situation following the Supreme Court’s October directive that permits a reassessment of dues up to FY17, according to NDTV Profit. Officials have begun preliminary discussions on potential relief measures, though a complete waiver of AGR dues is not under consideration. The government intends to support the revival of telecom operators while remaining within legal boundaries. Senior officials from the Department of Telecommunications (DoT) reviewed the legal constraints surrounding any relief last Thursday, and DoT and Ministry of Finance officials recently exchanged views. Another round of meetings is expected soon.
