CORPORATE
Vi gets a government lifeline with frozen AGR dues, payment moratorium until FY32
- IBJ Bureau
- Jan 01, 2026
The Union Cabinet has approved a rescheduling of Vodafone Idea’s (Vi) adjusted gross revenue (AGR) dues, amounting to Rs 87,695 crore. The government has cited public interest, the need to avoid excessive concentration in the telecom sector and interests of nearly 20 crore subscribers for the relief given to the telecom company.
The decision comes in the backdrop of the Supreme Court’s observation that any reconsideration of AGR-related matters falls within the policy domain of the Union government, provided it is guided by larger public interest.
Under the approved framework, Vi’s AGR dues frozen as of December 31, 2025, at Rs 87,695 crore will be rescheduled for repayment over a ten-year period from FY32 to FY41. The move is aimed at providing the operator with financial breathing space, while ensuring an orderly recovery of government revenues.
The Cabinet is particularly mindful of the highly-concentrated structure of the telecom industry. It has underlined that the continued presence of multiple private players is essential to sustain competition, safeguard consumer choice and prevent adverse consequences such as steep tariff hikes or deterioration in service quality. In this context, Vi’s survival as a viable operator is seen as crucial for the overall health of the sector.
The AGR dues, frozen as of December 31, 2025, will be reassessed by the Department of Telecommunications in line with the Deduction Verification Guidelines, dated February 3, 2020. This reassessment will be based on audit reports, with the final determination to be made by a government-appointed committee. The committee’s decision will be binding on both the government and the company.
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