Vodafone Idea Ltd. has secured a crucial relief from the government regarding its AGR dues, a move that significantly eases immediate cash flow pressures for the distressed wireless carrier.
The Department of Telecommunications (DoT) has frozen the company’s AGR dues—comprising principal, interest, and penalties accrued between fiscal years 2007 and 2019—as of 31 December 2025, according to a stock exchange filing on Friday.
The operator, in which government has 49% stake, has now outlined a revised, backloaded payment schedule approved by the regulator. Under the new terms,
- Vodafone Idea will pay a maximum of ₹124 crore annually over the next six years — March 2026 to March 2031.
- The obligation decreases to ₹100 crore annually from March 2032 through March 2035.
- The remaining balance is scheduled for repayment in equal annual installments between March 2036 and March 2041.
Additionally, the DoT will form a committee to reassess Vodafone Idea’s total AGR dues, with the regulator stating the committee’s decision will be final. The reassessed amount will also be amortised over the five-year period ending in 2041.
This restructuring offers a financial lifeline to Vodafone Idea, allowing it to preserve capital for operations while deferring the bulk of its regulatory payouts for a decade.