Vodafone Idea Shares Rise After Telecom Minister Scindia Signals Possible AGR Relief

Vodafone Idea has yet to submit a formal proposal seeking relief for its sizeable adjusted gross revenue (AGR) dues, after which the Department of Telecommunications will “make a recommendation,” Union Minister Jyotiraditya Scindia said on Monday.

A day after his remarks, shares of the telecom operator rose as much as 4% in early trade on Tuesday. By 2:34 pm, the stock had trimmed most of those gains but was still up around 1.81% at ₹10.12 on the BSE.

The comments come weeks after the Supreme Court allowed the government to extend relief to the debt-ridden company, albeit with certain conditions.

In an interview with CNBC-TV18, Scindia said, “DoT is waiting for a formal request from Vodafone. The government will make a recommendation after evaluating Vodafone Idea’s proposal.” He added that the ruling must be assessed carefully: “We cannot cross the borders of the Supreme Court judgment.”

Scindia said the government expects to complete its assessment and issue recommendations within a couple of weeks, with the contours of a relief package likely by year-end. He also noted that the ruling applies specifically to Vodafone Idea and that any other operator seeking similar relief would need to approach the court separately.

In its October 27 order, the apex court allowed the government to conduct a full reassessment and reconciliation of the financially stressed telco’s dues, including interest and penalties, up to FY17.

Vodafone Idea had approached the court in September, arguing that the DoT had raised additional demands related to spectrum purchases, stemming from a long-running dispute over the definition of AGR.

As of March 31, 2025, the company owed the government ₹1,93,970.2 crore, comprising deferred spectrum dues of ₹1,18,025 crore and AGR liabilities of ₹75,945.2 crore, according to its FY25 annual report.

Earlier this year, the government converted ₹36,950 crore of the company’s dues into equity, becoming its largest shareholder with a 49% stake. However, this move did little to revive confidence among lenders to support Vodafone Idea’s capital expenditure plans.

Since the Supreme Court’s judgment in October, Vodafone Idea’s shares have risen on renewed investor sentiment. The stock is up about 6% over the past month and more than 25% so far this year.