Vodafone Idea has confirmed that its adjusted gross revenue (AGR) dues of around ₹87,695 crore have been frozen by the government, with the telecom operator set to pay a maximum of ₹124 crore annually over the next six years, beginning March 2025 and running till March 2031.
In an exchange filing on Friday, the debt-laden telco said the relief follows communication from the Department of Telecommunications (DoT), under which payments related to AGR principal, interest and penalty for the period FY2007 to FY2019 have been put on hold. This comes days after Vodafone Idea had denied receiving any official communication on a moratorium.
Under the revised structure, the company will pay ₹124 crore per year until March 2031. Thereafter, the remaining AGR dues will be repaid in equal annual instalments of ₹100 crore between March 2036 and March 2041. Vodafone Idea said a DoT-appointed committee will reassess the AGR dues, and the final recalculated amount will be binding on the company.
“A committee is to be constituted by DoT to reassess the AGR dues, whose decision shall be final. The reassessed amount will be repaid between March 2036 and March 2041 in equal annual instalments,” the company said.
Following the disclosure, Vodafone Idea shares rose 3.3% in early trade on Friday, touching ₹11.88 on the BSE.
The relief is part of a fresh support package for the financially stressed telecom operator, in which the government now a 49% shareholder has allowed repayment of AGR dues over a longer period starting FY32. The move follows a recent Supreme Court ruling permitting the Centre to reassess Vodafone Idea’s AGR liabilities up to FY17.
Formed through the merger of Vodafone Group’s India business and Aditya Birla Group’s Idea Cellular in 2018, Vodafone Idea has repeatedly sought relief from the courts, citing severe financial stress and requesting a waiver of penalties and interest on AGR dues.
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