New Delhi: Vodafone Idea Ltd (VIL) on Friday said it has received significant relief from the Department of Telecommunications (DoT) in its long-running adjusted gross revenue (AGR) dispute, with the government agreeing to freeze its dues as of December 31, 2025, and permit a staggered payment schedule extending up to March 2041.
In a regulatory filing to stock exchanges, the telecom operator said the frozen AGR dues—comprising principal, interest, penalty and interest on penalty for the period from FY2006-07 to FY2018-19—will now be payable in a phased manner over the next 15 years.
As per the DoT communication, Vodafone Idea will pay a maximum of ₹124 crore annually for the first six years from March 2026 to March 2031.
This will be followed by payments of ₹100 crore per year for four years between March 2032 and March 2035. The balance amount will then be paid in equal annual instalments over six years from March 2036 to March 2041.
In a further relief, the DoT will constitute a committee to reassess Vodafone Idea’s AGR dues. The company said the decision of this committee will be final, and the reassessed amount—if any—will also be repaid in equal instalments during the March 2036–March 2041 period.
The development follows Vodafone Idea’s earlier disclosure on December 31, 2025, regarding discussions with the government on the AGR issue. The revised payment structure significantly eases near-term cash flow pressure for the debt-laden telco, which has been struggling to fund network investments while servicing regulatory dues.
AGR dues have been a major overhang for the Indian telecom sector since the Supreme Court’s 2019 verdict endorsing the government’s definition of AGR. Vodafone Idea, which has the highest exposure among private operators, has repeatedly sought relief, warning that excessive regulatory liabilities threaten its survival.
Shares of Vodafone Idea were trading with mild gains in early trade, as investors welcomed the deferment of dues and the prospect of a reassessment, though uncertainty over the final payable amount continues to weigh on sentiment.