In a written reply to the Lok Sabha on February 6, 2026, the Ministry of Communications revealed that India’s telecom operators collectively owe over ₹1.77 lakh crore in Adjusted Gross Revenue (AGR) dues to the government up to the end of FY25.
The data highlights a severe financial imbalance in the sector, with a single debt-ridden operator accounting for more than half of the total outstanding liability.
1. Who Owes How Much?
The ₹1.77 trillion liability includes license fees and spectrum usage charges (SUC) accumulated between FY2006–07 and FY2024–25.
| Telecom Group | Outstanding AGR Dues | Market Position |
| Vodafone Idea (Vi) | ₹89,952 Crore | Highest liability (~51% of total). |
| Bharti Airtel | ₹51,091 Crore | Second highest; seeking parity with Vi. |
| Tata Group | ₹20,426 Crore | Legacy dues from former telecom operations. |
| MTNL | ₹14,462 Crore | State-run entity under heavy debt. |
| Reliance Jio | ₹1,984 Crore | Lowest liability among private majors. |
2. The Vodafone Idea “Freeze” & Relief
To prevent a duopoly and protect its 49% equity stake in the company, the Union Cabinet recently granted a massive relief package to Vodafone Idea:
- Dues Frozen: AGR dues for the period FY07 to FY19 have been frozen at ₹87,695 crore as of December 31, 2025.
- Payment Holiday: Vi will pay a maximum of only ₹124 crore annually for the next six years (March 2026–2031), providing it with the breathing room needed to invest in its delayed 5G rollout.
- Back-ended Repayment: The bulk of the remaining debt will be repaid in equal installments between 2036 and 2041.
3. The Reassessment Committee
On January 30, 2026, the Department of Telecommunications (DoT) formed a specialized committee to re-examine the “frozen” portion of the dues.
- Composition: Includes a retired Secretary-level officer and a representative from the Comptroller and Auditor General (CAG).
- Timeline: The panel has been tasked to finalize its reassessment within two months.
- Finality: The committee’s decision will be legally binding on both the DoT and the telecom operators.
4. Airtel’s Demand for “Parity”
Following the relief granted to its rival, Bharti Airtel has officially approached the DoT seeking identical treatment.
- Equal Treatment: Airtel Executive Vice-Chairman Gopal Vittal confirmed on February 6 that the company has sent multiple letters to the government requesting “parity” on AGR dues.
- Budget Impact: Analysts suggest the government may be hesitant to grant Airtel similar relief, as the Union Budget 2026-27 relies on an additional ₹60,000 crore in telecom receipts to meet its FY26 targets.
Conclusion: A Sector in Transition
The disclosure of the ₹1.77 lakh crore debt underscores the fragile “three-player” stability the government is trying to maintain. While the relief for Vodafone Idea stems the immediate threat of insolvency, the upcoming reassessment by the DoT committee will be the ultimate factor in determining if the Indian telecom landscape remains competitive or shifts toward a Jio-Airtel duopoly.
