In a major relief to debt-hit Vodafone Idea (Vi), the Union Cabinet has approved a support package that freezes the company’s adjusted gross revenue (AGR) dues at ₹87,695 crore as of December 31.
The frozen dues will be payable over a 10-year period, from FY32 to FY41. The Department of Telecommunications is expected to reassess the amount at a later stage.
However, there is no change in AGR liabilities for FY18 and FY19. These dues will have to be paid between FY26 and FY31 as per the existing repayment schedule.
The decision comes at a crucial time for Vodafone Idea, which has been under pressure due to a falling share price and concerns over its financial health.
According to officials, the move is aimed at protecting the Centre’s 49 percent stake in the telecom operator, ensuring an orderly recovery of government dues, maintaining competition in the telecom sector, and safeguarding services for Vodafone Idea’s nearly 200 million subscribers.