The Department of Telecommunications (DoT) has sought the Prime Minister’s Office (PMO) intervention to support Vodafone Idea Limited (Vi), warning that the operator risks insolvency by fiscal year 2026 without urgent relief. Vi has cautioned that it cannot continue operations beyond FY26 unless it receives assistance on its adjusted gross revenue (AGR) dues, with ongoing loan talks dependent on such support.
Meanwhile, the government has already raised its stake in Vi to 49 per cent by converting Rs 369.5 billion dues into equity and is considering further measures, including extending AGR repayment from 6-20 years and switching to simple interest. These steps are aimed at averting a market duopoly and preserving competition in the sector. Further, Vi had approached the supreme court seeking waiver of around Rs 300 billion in AGR penalties and interest, contending that its collapse would erode the government’s stake value and lower future spectrum auction revenues.
