Kumar Mangalam Birla said the government’s AGR relief marks a “decisive turning point” for Vodafone Idea.
The Aditya Birla Group holds a 9.5% stake in Vi.
Vi had earlier told the court that the mounting AGR liabilities had become a survival issue.
The recent relief granted by the Union government to Vodafone Idea (Vi) marks “a decisive turning point” for the company, according to Kumar Mangalam Birla, chairperson of the Aditya Birla Group. The group holds a 9.5% stake in the telecom operator, which has been burdened with tens of thousands of crores in adjusted gross revenue (AGR) dues owed to the Department of Telecommunications (DoT).
The dues had become a survival issue for the company, an earlier court filing noted.
1 January 2026
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Last month, the Cabinet approved a five-year moratorium on Vi’s AGR liabilities, amounting to around ₹87,695 crore. The dues were also frozen as of December 31, 2025. The decision followed Vi’s petition to the Supreme Court seeking relief on the long-standing matter.
“With long-standing uncertainty removed through the clarity of the Honourable Supreme Court’s judgment and the government’s decisive intervention, the operating environment has fundamentally changed. For the first time in years, the fog has cleared, allowing the business to look beyond survival and focus on sustainable growth,” Birla wrote in his annual letter, 'My Reflections', on Thursday.
He added that the Vodafone Idea experience reinforces his belief that “tough times don’t last. Tough companies do”.
“The company was carried through its most challenging years by the commitment of employees, the loyalty of customers and the belief of business partners and shareholders. Equally vital was the government’s unflinching determination to revitalise the telecom sector, coupled with the firm conviction of the promoters in the long-term potential of Indian telecom. A dogged focus on daily operations, service and network expansion will now serve as the foundation for revival,” he noted.
Birla added, “India deserves three private telecom players. India deserves a successful Vodafone Idea. And this is, once again, an idea whose time has come.”
Despite the relief, Vi will still need to pay a maximum of ₹124 crore annually over the next six years, from March 2026 to March 2031. In addition, ₹100 crore will be paid annually over four years. The remaining AGR dues are to be paid in equal annual instalments over six years, from March 2036 to March 2041.
A committee under the Department of Telecommunications will now reassess the AGR dues owed by the company, a move that reports suggest could substantially reduce the total liability.
Vi 2.0 Reset
On Wednesday, the telecom operator also announced a three-year roadmap aimed at restoring growth and profitability.
Chief executive officer Abhijit Kishore, speaking on an analysts’ call, outlined a “1-2-3” framework focused on customer additions, double-digit revenue growth and tripling EBITDA.
Vi plans to invest ₹45,000 crore over the next three years, in addition to ₹18,000 crore already spent, taking total planned investment to over ₹60,000 crore in about four years.
Most of the funds will be directed towards network expansion. The company aims to achieve 4G parity with rivals across its 17 priority circles within 12–24 months and roll out 5G in urban markets with populations above 20,000 over the next 12–30 months.
Vi also plans to upgrade remaining 2G sites to 4G in select circles, expand fixed wireless access, and prepare for satellite services through AST SpaceMobile.
“The AGR overhang meant funding was not available. Without funding, investments and deployments suffered. That hurt network experience, impacted brand perception and led to subscriber losses,” Kishore said.
Kishore added that the long-standing “vicious cycle” has been broken by three key developments: Vi’s ₹3,300 crore fundraise through non-convertible debentures, the extension of the contingent liability adjustment mechanism with Vodafone Plc until December 31, 2025, including a planned ₹2,300 crore cash infusion and the AGR relief.
