Mumbai: The department of telecommunication (DoT) has cut Vodafone Idea's (Vi's) adjusted gross revenue (AGR) liabilities by nearly 27% in a major cash-flow relief that opens up avenues for fresh fundraising to the country's third-largest telecom operator.
After reassessment of Vi's AGR dues, a DoT-appointed committee has finalised the total AGR amount at ₹64,046 crore as on December 31, 2025, Vi said in a regulatory filing on Thursday.
Earlier, the DoT had frozen the AGR dues as on December 31 at ₹87,695 crore, subject to reassessment and final approval by the committee.
Following the reduction in Vi's AGR dues, rival Bharti Airtel may also again write to the DoT seeking reassessment of its AGR dues. The Sunil Mittal-led telco had earlier written to DoT seeking reassessment of its AGR dues but there was no action from DoT as it felt the company should get relief order from the Supreme Court.
With the AGR dues now finalised, Vi will pay a minimum of ₹100 crore annually for four years between FY32 and FY35 under the approved payment schedule.
The remaining dues will be settled in six equal annual instalments from FY36 to FY41, effectively freezing the bulk of the dues for a decade. The staggered repayments are now spread over 16 years, providing a much-needed breathing window to the struggling telco.
Vi's shares closed 0.68% lower at ₹10.22 apiece on the BSE on Thursday, before the announcement was made late evening.
The government has made several interventions to keep the struggling telecom operator afloat.
Under its 2021 telecom relief package, the government offered a four-year moratorium to telcos, including Vi for payment of AGR and spectrum dues. The option to convert dues into equity was also given.
In February 2023, nearly ₹16,000 crore of interest on VI's deferred spectrum and AGR dues was converted into equity, giving the government about 33% stake at the time. This was followed by the conversion of an additional ₹36,950 crore of spectrum auction dues into equity in April 2025, eventually raising its stake to 48.99%, making it the company's largest shareholder.
After reassessment of Vi's AGR dues, a DoT-appointed committee has finalised the total AGR amount at ₹64,046 crore as on December 31, 2025, Vi said in a regulatory filing on Thursday.
Earlier, the DoT had frozen the AGR dues as on December 31 at ₹87,695 crore, subject to reassessment and final approval by the committee.
With the AGR dues now finalised, Vi will pay a minimum of ₹100 crore annually for four years between FY32 and FY35 under the approved payment schedule.
The remaining dues will be settled in six equal annual instalments from FY36 to FY41, effectively freezing the bulk of the dues for a decade. The staggered repayments are now spread over 16 years, providing a much-needed breathing window to the struggling telco.
Vi's shares closed 0.68% lower at ₹10.22 apiece on the BSE on Thursday, before the announcement was made late evening.
The government has made several interventions to keep the struggling telecom operator afloat.
Under its 2021 telecom relief package, the government offered a four-year moratorium to telcos, including Vi for payment of AGR and spectrum dues. The option to convert dues into equity was also given.
In February 2023, nearly ₹16,000 crore of interest on VI's deferred spectrum and AGR dues was converted into equity, giving the government about 33% stake at the time. This was followed by the conversion of an additional ₹36,950 crore of spectrum auction dues into equity in April 2025, eventually raising its stake to 48.99%, making it the company's largest shareholder.
