Vodafone Idea Unlikely to Receive Further Relief or Payment Extension: Report

The government is not keen to extend further financial relief to Vodafone Idea (Vi) regarding its adjusted gross revenue (AGR) dues from FY26 onwards, senior officials in the Department of Telecommunications (DoT) have indicated, according to a Business Standard report.

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Also Read: Govt Rules Out Relief for Vodafone Idea at the Moment, Reaffirms Commitment to Fair Competition

No More Financial Leeway

Despite ongoing discussions with the country’s third-largest telecom operator, officials reportedly said the scope for providing additional leeway—such as a relaxed payment schedule—has significantly narrowed. “Giving further financial leeway is becoming increasingly difficult,” a DoT official was quoted as saying.

To be specific, as per the report, the government is not willing to convert more dues into equity and cannot reduce the Rs 84,000 crore AGR amount owed by the company. In earlier relief measures, the Centre had allowed the conversion of dues into equity to ease the company’s financial stress.

Delayed Turnaround Raises Concerns

“The government has already taken equity. The idea was to give the company enough time to get back on its feet during the moratorium period. It’s been four years since, but there hasn’t been any expected outcome, the official was quoted as saying.

Also Read: Retail Shareholders Raise Alarm Over Vodafone Idea’s Future at EGM

Policy-Level Change Needed for Further Relief

Vi, which has been grappling with high debt and persistent losses, is under pressure to raise funds and improve its operational performance.