Vodafone Idea Receives ₹87,695 Crore Respite as AGR Dues are Frozen by Cabinet
In a significant move for the heavily indebted telecom operator, Vodafone Idea, the Union Cabinet approved a support package on December 31, 2025. This package freezes the company’s adjusted gross revenue (AGR) dues at ₹87,695 crore. These frozen dues are not required to be paid immediately, but will be repaid over a span of 10 years, commencing from the fiscal year 2031-32 and extending until FY41.
The Cabinet’s decision is designed with multiple objectives in mind. These include:
- Protecting the government’s nearly 49% stake in Vodafone Idea
- Ensuring orderly repayment of dues
- Maintaining competition in the telecom sector
- Safeguarding the interests of approximately 20 crore subscribers
However, it’s important to note that the relief does not extend to AGR liabilities related to FY18 and FY19. These must be paid between FY26 and FY31, in accordance with the existing schedule.
Despite the announcement, Vodafone Idea shares experienced a sharp decline, dropping over 10% during trading. The company issued a clarification stating it had not received any official communication from the government regarding the reported decision.