The Department of Telecommunications’ (DoT) proposal to waive adjusted gross revenue (AGR) dues for telecom operators has been reportedly put on hold due to a lack of consensus within the government’s top decision-making circles. This setback is particularly significant for Vodafone Idea Limited (Vi), which is already struggling with financial losses.
A prevailing sentiment within the government is that providing financial relief to private companies, some of which are profitable, on an issue already settled by the Supreme Court would be inappropriate.
However, recognising the critical financial situation of Vi, DoT is expected to work on a revised relief package for the debt-laden sector. As of December 31, the telco had a cash balance of Rs 120.90 billion but faces significant statutory payment obligations, including Rs 291 billion due in March 2026 and Rs 430 billion payable between financial year 2027 (FY27) and FY31.
