Vodafone Idea's Lifeline Snapped: Government Gives Up AGR Relief Plans

The Indian government has apparently abandoned plans to grant relief on Adjusted Gross Revenue (AGR) dues, giving a major blow to ailing telecom operator Vodafone Idea. The Cabinet Secretariat has apparently told the Department of Telecommunications (DoT) that AGR relief is no longer being considered, as per recent reports.

 

This move is a major blow for Vodafone Idea, which has AGR dues of ₹80,000-85,000 crore to be paid by March 2025. The firm had been hoping for relief from the government to lighten its burden and become viable in the long term.

 

Without relief from AGR, Vodafone Idea may be hit by a financial crisis as soon as FY26 or FY27, when its yearly spectrum and AGR payment to the government, approximated at about ₹40,000 crore annually, fall due.

 

This comes on the heels of the Supreme Court rejection of review petitions by telcos for AGR dues recalculations early this year.

 

Sources: Telecom Talk, Economic Times, March 19, 2025