India’s government is actively exploring relief measures for Vodafone Idea’s mounting AGR dues, estimated at ₹84,000 crore, aiming to preserve competition and avoid telecom sector collapse.
Exploring Multiple Relief Options
The Department of Telecommunications (DoT) has proposed several potential prescriptions to the Prime Minister’s Office (PMO), including:
- A two-year extension of the repayment moratorium
- Waiver of penalties and interest on AGR dues
- A longer repayment schedule with smaller instalments
Government Already Converted Dues into Equity
Earlier this year, the government converted a portion of telecommunications dues into equity, making it the largest stakeholder in Vodafone Idea, boosting its shareholding from 22.6% to 48.99%.
Legal and Fiscal Headwinds
In May 2025, the Supreme Court rejected Vodafone Idea’s plea to waive or recalibrate AGR dues, dismissing the petitions as “misconceived” and reinforcing the company’s full liability.
Moreover, Communications Minister Jyotiraditya Scindia stated that no further equity conversion would take place beyond the current 49% stake. The company must now shoulder its financial restructuring independently.
Financial Risk & Urgency
Vodafone Idea’s CEO, Akshaya Moondra, confirmed ongoing engagement with the government to manage AGR obligations. The firm must begin paying roughly ₹18,000 crore annually from March 2026—far exceeding its current cash flows. Without firm relief, the company’s survival is uncertain. Business Standard+1The Times of India
Analysts warn: Without timely support, Vodafone Idea could run out of cash by March 2026. A relief package might enable it to raise bank debt, fund network expansion, and retain its nearly 200 million subscribers.
