In its recent communication to the Department of Telecommunications (DoT), Vodafone Idea Limited (Vi) has warned that its planned investments hinge on bank debt disbursement, which in turn depends on timely government support. Without such assistance, and if the company is unable to meet its adjusted gross revenue (AGR) obligations, Vi cautioned that it may be forced into proceedings under the National Company Law Tribunal (NCLT), a lengthy and uncertain process.
The company emphasised that such a scenario could lead to significant service disruptions, diminishing the value of its spectrum and network assets. With over 200 million users, any disruption would force mass porting, it noted, impacting consumers as well as the broader telecom ecosystem.
Vi further stated that timely intervention would safeguard service continuity for 200 million subscribers, preserve direct and indirect employment for roughly 30,000 individuals, and protect the interests of its more than 6 million shareholders.
Furthermore, highlighting the government’s 49 per cent stake in the company, Vi argued that the centre itself stands to lose the most if the telco is pushed into marginalisation or operational collapse due to the burden of the AGR judgment. The company added that in the absence of capital expenditure and subscriber retention, its earnings before interest, tax, depreciation and amortisation (EBITDA) would decline, ultimately leading to a default in its AGR instalment due in March 2026.
