The central government is reportedly developing a mechanism to provide relief to telecom operator Vodafone Idea Limited (Vi), which has requested a waiver of Rs 450 billion from its adjusted gross revenue (AGR) dues.
Vi currently owes Rs 834 billion in AGR dues. The company had earlier approached the Department of Telecommunications (DoT) seeking a waiver of over Rs 450 billion, which includes interest, penalties, and interest on penalties. The telecom operator had cautioned that it may not be able to sustain operations beyond financial year 2025-26 (FY26) without government intervention. Further, failure to receive support could lead to insolvency proceedings under the National Company Law Tribunal (NCLT).
The company had filed a petition in the Supreme Court seeking relief on the interest and penalty portions of AGR dues. However, the Supreme Court has dismissed the plea. If no relief is provided, the company will have to pay over Rs 180 billion annually starting FY26, including Rs 164.28 billion towards AGR dues and Rs 25.39 billion for deferred spectrum payments.
Despite the setback by the Supreme Court decision, Vi remains hopeful of receiving support from the government.
