The union cabinet has reportedly cleared a relief package for Vodafone Idea Limited (Vi), freezing its outstanding adjusted gross revenue (AGR) dues and granting a five-year moratorium on repayments, a move seen as crucial to stabilising the financially stressed telecom operator.
As part of the decision, the cabinet has agreed to freeze Vi’s AGR dues at Rs 876.95 billion. Repayments will commence from the FY 2031-32, with the entire amount scheduled to be cleared by FY 2040-41.
Further, the frozen AGR dues will be re-examined by the Department of Telecommunications based on the deduction verification guidelines issued in 2020, along with relevant audit reports. A government-appointed committee will determine the final payable amount, and its decision will be binding on both the government and the company.
The measures are aimed at safeguarding government interests, including its 48.9 per cent stake in Vi, while enabling an orderly settlement of statutory liabilities, preserving competition in the telecom market, and ensuring continuity of services for the company’s nearly 200 million subscribers.
However, the AGR dues for the FY 2017-18 and FY 2018-19, finalised following the Supreme Court of India order of September 2020, will remain unchanged. These dues will be paid between FY 2025-26 and FY 2030-31 without any revision. The amount payable during this six-year period works out to roughly Rs 1.20 billion annually, translating to about Rs 7-8 billion in total.