Centre unlikely to offer further financial relief to Vodafone Idea on AGR dues: Report

The company continues to post quarterly losses and is struggling to secure Rs 35,000 crore in debt funding, part of a Rs 50,000-Rs 55,000 crore capex plan.

Vodafone Idea (Vi) is unlikely to receive further financial relief from the government on its adjusted gross revenue (AGR) dues, which stand at around Rs 84,000 crore, according to Department of Telecommunications (DoT) officials.

While Vi continues to engage in discussions with the government, officials, cited in a Business Standard report, have stated that any relaxation on the payment schedule, especially for dues beginning FY26, is improbable.

As per a senior DoT official, the Centre had already converted Rs 36,950 crore of Vi’s dues into equity under the 2021 telecom relief package, making it the largest shareholder with a 49 percent stake. The intention, according to the officials, was to give Vi breathing space during the moratorium period, states the report.

Any additional concessions would require a broader policy change that would impact all telecom operators, including Bharti Airtel, which has also reportedly sought equity conversion of dues.

Notably, Vi is slated to begin annual AGR payments from March 2026 to 2031, with the first instalment exceeding Rs 18,000 crore, significantly higher than its current cash flows.

The company continues to post quarterly losses and is struggling to secure Rs 35,000 crore in debt funding, part of a Rs 50,000-Rs 55,000 crore capex plan.

CEO Akshaya Moondra recently acknowledged lenders’ hesitance due to lingering uncertainty over the AGR issue.

However, despite media reports, Vi confirmed last week it had not received any communication from the government regarding relaxed payment terms.

Telecom Minister Jyotiraditya Scindia has, meanwhile, ruled out increasing the Centre’s stake in the company. Early this May, the Supreme Court dismissed Vi’s plea seeking a partial AGR waiver.