The Union Cabinet has approved a major relief package for Vodafone Idea Limited (VIL), freezing its adjusted gross revenue (AGR) dues at ₹87,695 crore. The move is aimed at stabilizing the debt-ridden telecom operator and ensuring continuity of services for millions of subscribers across India.
The Cabinet decision fixes the AGR dues as of December 31, 2025, and allows repayment to be spread over a 10-year period from FY 2031-32 to FY 2040-41. The Department of Telecommunications (DoT) will reassess the frozen dues based on Deduction Verification Guidelines and audit reports, with final determination by a government-appointed committee.
AGR dues related to FY18 and FY19, which were finalized by the Supreme Court in 2020, will remain payable between FY26 and FY31 without changes.
Vodafone Idea has long struggled under the weight of massive AGR liabilities, which threatened its financial viability. The company had earlier approached the Supreme Court seeking relief, arguing that immediate repayment obligations could jeopardize its survival. The apex court allowed the government to reassess statutory dues in the larger public interest, paving the way for the Cabinet’s intervention.
The relief package is designed to protect the government’s interest as a 49% shareholder in Vodafone Idea, ensure orderly recovery of statutory dues, and maintain healthy competition in the telecom sector. It also safeguards uninterrupted services for nearly 20 crore consumers dependent on Vodafone Idea’s network.
While the Cabinet’s decision was welcomed as a lifeline for Vodafone Idea, the company’s stock witnessed volatility, hitting a lower circuit on December 31. Analysts noted that while the freeze provides immediate respite, Vodafone Idea must strengthen its operational performance and revenue streams to remain competitive.
Industry experts believe the government’s move signals a pragmatic approach to balancing statutory dues recovery with sectoral stability. The rescheduling of payments is expected to give Vodafone Idea time to restructure its finances, attract new investments, and focus on service improvements.
