In a move that sent Vodafone Idea (Vi) shares surging by over 8% in early trade, the government has officially frozen the company’s AGR liabilities (including principal, interest, and penalties) as of December 31, 2025.
The relief package is designed to provide immediate “breathing space” for the operator to invest in its 4G and 5G network rollouts while protecting the government’s 49% equity stake in the company.
The New Three-Tiered Repayment Schedule
The DoT has scrapped the previous requirement for Vi to begin paying ₹16,000+ crore annual installments in 2026. The new schedule is broken into three distinct phases:
| Phase | Timeline | Annual Payment Amount |
| Phase 1 | March 2026 – March 2031 | Maximum ₹124 Crore |
| Phase 2 | March 2032 – March 2035 | ₹100 Crore |
| Phase 3 | March 2036 – March 2041 | Equal installments of remaining dues |
The Reassessment Committee
One of the most critical aspects of this announcement is the formation of a DoT-led committee to reassess the total AGR obligations.
- Final Verdict: The committee’s decision on the actual amount owed will be binding on both the government and the company.
- Potential Reduction: Analysts expect the current estimate of ₹87,695 crore could be reduced following a detailed circle-wise reconciliation, especially for the period up to FY17.
- The “Clean Slate” Goal: By deferring the bulk of the payments to 2036, the government expects Vi to have cleared most of its ₹1.17 trillion in spectrum dues by then, making the company financially stable enough to handle the remaining AGR balance.
Market Reaction: A “Victory” for Vi?
While the relief addresses the immediate cash flow crunch, market experts note that the company is not out of the woods yet.
“This is a massive tactical win. It prevents an immediate bankruptcy scenario and allows Vi to compete. However, the company still needs to raise nearly ₹40,000 crore in fresh capital to bridge the technology gap with Jio and Airtel.” — Telecom Analyst, Jan 2026
Key Stock Stats (Jan 9, 2026):
- Vi Share Price: Reached an intraday high of ₹12.51 (+9%).
- Indus Towers: Rose 6% to hit a 52-week high, as Vi’s survival secures a major revenue stream for the tower giant.
