New Delhi: Cabinet freezes Vi AGR dues, grants more time
The government on Wednesday froze Vodafone Idea Ltd’s (Vi) adjusted gross revenue (AGR) dues at ₹87,695 crore as of December 31, 2025, and allowed the telecom operator to repay the amount over 10 years from fiscal 2032 to fiscal 2041.
The cabinet decision, announced following Vi’s request for relief after recent Supreme Court orders, aims to protect the government’s 49% stake in the company acquired earlier this year and maintain competition in the sector.
AGR dues represent licence fees and spectrum charges that telecom operators pay the government, calculated as a percentage of their revenues. A 2019 Supreme Court judgment had broadened the definition of AGR to include non-telecom revenues, significantly increasing liability for operators.
After Vi reported losses for several consecutive quarters, the government acquired a 49% stake earlier this year to prevent the sector from becoming a duopoly.
“The survival of M/s VIL as a viable player is critical for Telecom Sector,” the government said on Wednesday, describing telecoms as a “critical infrastructure sector with strong linkages to economic growth” that requires multiple players for healthy competition.
The decision seeks to ensure “orderly payment of dues” such as spectrum charges and AGR, maintain sectoral competition, and safeguard the interests of “20 crore VIL consumers,” the government said. It noted the sector is “highly concentrated” and the move is in the interest of consumers and competition.
Vi in a stock exchange submission uploaded on its website on Wednesday, referring to the report regarding AGR dues being frozen by the government, said, “We have not received any communication from the Government in relation to the above reported matter. As and when there is any development which requires disclosure, we will do the needful.”
The cabinet acted after the Supreme Court, in orders on October 27, November 3 and November 11, allowed the government to reassess Vi’s AGR dues. The court observed there would be “no impediment in reconsidering the issue” and that the matter falls within the government’s policy domain.
The court said if the government, “keeping in view larger public interest, desires to reconsider the issue, there is no reason to restrain or prevent it from doing so.” It clarified that “the government can reconcile, reassess entire arrear dues up to 2016-17, including penalty and interest.”
The court said its order applies only to Vi, citing “peculiar facts and circumstances” as the government has acquired 49% equity in the company to protect 200 million consumers.
Vi had approached the top court earlier this year challenging the department of telecommunications’ fresh demand for ₹9,450 crore towards AGR dues, arguing it contradicted the 2019 judgment’s finality.
Following the court’s observations, Vi approached the government for relief, prompting the cabinet to freeze and reschedule the AGR dues over the next 10 years.
Source: Read full coverage
