The government of India is expected to grant Vodafone Idea Limited (Vi) an interest-free moratorium of four to five years on more than Rs 830 billion of pending statutory dues linked to adjusted gross revenue (AGR), offering immediate relief to the financially stressed telecom operator.
After the moratorium period ends, the company is reportedly required to clear the arrears in six instalments, though the payable amount is expected to be significantly lowered, potentially to nearly half, following a reassessment of its liabilities.
Under the existing repayment schedule, Vi is required to pay over Rs 180 billion next March 2025 as the first instalment after the expiry of the AGR moratorium granted to telecom operators in 2021. That moratorium was not interest-free, which led to the dues increasing annually. Under the proposed relief package, Vi’s outstanding liabilities will be frozen, with no further interest accumulation going forward, the sources added.
