Vodafone Idea Shares Rise 2% as Cabinet May Consider Relief on AGR Dues

Shares of debt-ridden telecom operator Vodafone Idea (Vi) rose more than 2% in early trade on Wednesday, December 31, after media reports said the Union Cabinet could discuss the long-pending Adjusted Gross Revenue (AGR) issue related to the teleco later in the day.

The Cabinet is likely to take up Vi’s bailout plan as the government looks at ways to ease the severe financial stress faced by the company. Any positive decision could provide much-needed relief to Vi, which has been struggling to stay afloat amid mounting losses and heavy debt, according to a report by The Times of India.

Vodafone Idea’s troubles largely stem from its huge AGR dues.

AGR refers to the revenue on which telecom companies must pay licence fees and spectrum usage charges to the government.

In 2019, the Supreme Court ruled that AGR should include not just telecom revenue but also other income, such as interest and rent. This judgment led to massive additional dues for telecom firms, pushing several operators out of the market.

Vi currently owes the government close to ₹2 lakh crore, including AGR dues, spectrum payments and interest. The company has repeatedly said that without relief, it may not be able to continue operations.

In October, the Supreme Court allowed the government to reassess Vi’s AGR dues, offering some breathing room. However, the court also made it clear that it would not grant any waiver of dues and that companies must ultimately pay what is legally owed.

In its petition before the apex court, Vi said its AGR liability stood at ₹83,400 crore as of March 31, 2025. It added that under the existing payment schedule, it would need to pay around ₹18,000 crore every year starting from March 2026 for the next six years, a burden the company says is unsustainable.