Vi confirmed that its AGR dues will remain frozen till Dec 31, 2025 and a phased repayment is scheduled from FY26 to FY41.
DoT will reassess the AGR dues via a committee, while this revised relief boosted Vi shares by 7.6%.
Move aims to keep Vi afloat, protect govt’s 49% stake, and maintain telecom competition.
Vodafone Idea Confirms Relief on AGR Dues, Shares Surge up to 8%
Vi will have to pay a maximum of ₹124 crore annually over next 6 years beginning from March 2026 to March 2031. Additionally, ₹100 crore will be paid annually over 4 years, i.e., March 2032 to March 2035
Vodafone Idea Confirms Relief on AGR Dues, Shares Surge up to 8%
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Vodafone Idea (Vi) on Friday confirmed that its adjusted gross revenue (AGR) dues for the period from financial year 2006-07 (FY07) to FY19 will remain frozen as of December 31, 2025. The debt-ridden telco received the information from Department of Telecommunications (DoT).
According to the statement, Vi will have to pay a maximum of ₹124 crore annually over next 6 years beginning from March 2026 to March 2031. Additionally, ₹100 crore will be paid annually over 4 years, i.e., March 2032 to March 2035. Meanwhile, the remaining AGR dues, has to be paid in equal installments annually over 6 years, i.e. March 2036 to March 2041.
Earlier reports had claimed that the government had approved a five-year moratorium on the telecom operator’s AGR liabilities amounting to around ₹87,695 crore. However, at that point of time, Vi did not release any official statement on the matter.
According to those reports, the Cabinet had agreed to freeze the AGR dues, with repayments deferred to the period between FY32 and FY41. In addition, the company would have to settle its outstanding AGR liabilities for FY18 and FY19 over the next five years.
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Under the earlier repayment schedule, the Aditya Birla Group-backed telco was required to begin paying its dues from March 2026 in 10 equal instalments.
Notably, Vi also stated that a committee will be constituted by DoT to reassess the AGR dues, whose decision shall be final.
This official statement by the company led to a surge in its share price by 7.6% during the early trade on Friday. The shares were trading at ₹12.45 on the BSE in the morning session.
The Centre's decision comes after the Supreme Court in October, 2025 allowed the government to reassess all dues owed by the operator, including interest and penalties, up to FY17.
The company had repeatedly said that without relief, it may not be able to continue operations as it owes the government close to ₹2 lakh crore, including AGR dues, spectrum payments and interest.
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The government's move is reportedly aimed at protecting the government’s 49% stake in Vodafone Idea, enabling the company to clear its dues in an orderly manner, and preserving competition in the telecom sector.
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