Wed Dec 31 09:38:35 UTC 2025: Summary:

The Indian Union Cabinet has decided to freeze Vodafone Idea Ltd’s (VIL) Adjusted Gross Revenue (AGR) dues at Rs. 87,695 crore as of December 31, 2025, offering the financially struggling telecom company a five-year reprieve to stabilize and raise funds. The payment of these dues will be rescheduled between the financial years 2031-32 and 2040-41. The Department of Telecommunications (DoT) will reassess the AGR dues based on existing guidelines and audit reports, with a government-appointed committee’s decision being binding. This move, deemed necessary to maintain competition in the telecom sector and protect VIL’s 200 million consumers, comes as the government holds a 49% equity stake in the company.

News Article:

Vodafone Idea Granted Lifeline: Government Freezes Rs. 87,695 Crore AGR Dues

New Delhi, December 31, 2025: In a move aimed at rescuing the struggling telecom operator Vodafone Idea Ltd (VIL), the Union Cabinet has approved a freeze on the company’s Adjusted Gross Revenue (AGR) dues, effective today, December 31, 2025. The total frozen amount stands at Rs. 87,695 crore.

According to a government official, the decision, made in accordance with Supreme Court orders, provides VIL with crucial breathing room to stabilize its finances and attract much-needed investment.

“The Union Cabinet has… decided to freeze the AGR dues of Vodafone Idea Ltd as on 31st December 2025 at Rs.87,695 crore,” the official stated.

The repayment of these frozen dues has been significantly restructured, with the timeline now extended from FY 2031-32 to FY 2040-41. Furthermore, the Department of Telecommunications (DoT) will conduct a reassessment of the AGR dues, utilizing existing deduction verification guidelines and audit reports. A government-appointed committee will then review the reassessed amount, with its decision considered final and binding for both VIL and the government.

With the government holding a 49% equity stake in VIL, this decision highlights the government’s commitment to preserving competition within the telecom sector and safeguarding the interests of VIL’s 200 million subscribers. Industry analysts believe that the freeze will allow VIL to focus on improving its network infrastructure and expanding its services, potentially averting a significant market disruption. The move follows previous Supreme Court relief granted to VIL, where the Centre agreed to reconsider additional AGR dues. This latest action underscores the government’s ongoing efforts to support the telecom sector and ensure a stable and competitive environment.

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