The Department of Telecommunications (DoT) has cut Aditya Birla Group-backed Vodafone Idea (Vi’s) outstanding adjusted gross revenue (AGR) dues by 27 per cent to ₹64,046 crore following a reassessment, from the earlier amount of ₹87,695 crore.
The dues, reassessed by the DoT and finalised by a committee constituted for this purpose, are now frozen as of December 31, 2025. Most of the amount will be payable in six instalments over six years beginning FY36, thus maintaining the 10-year breather given to the struggling carrier earlier this year.
“We now wish to submit that the DoT vide its communication dated April 30 has informed that the committee formed for the purpose has finalised the AGR dues at ₹64,046 crore as on December 31, 2025,” Vi said in a statement to the BSE on Thursday evening after market hours.
“This final amount will be payable as follows: (a) a minimum of ₹100 crore to be paid annually over four years from FY31-32 to FY35; (b) the remaining amount to be paid in six equal annual instalments from FY36 to FY41,” it added.
According to the terms, Vi will pay ₹124 crore annually over the next six years, starting March 2026 through March 2031. This amount pertains to dues for FY18 and FY19, which were not part of the reassessment.
A minimum of ₹100 crore will be paid annually for four years, ending March 2035. The remaining AGR dues, split into six instalments of ₹10,608 crore each, will be paid annually from March 2036 to March 2041.
According to officials, the first payment of ₹124 crore for March 2026 has already been made. Vi is yet to announce its Q4FY26 and full-year FY26 results, which will now incorporate the final reassessed AGR dues.
Sector watchers said that finality to the reassessment and the reduction in outstanding dues would provide banks and potential investors with greater clarity on Vi’s financial position.
“The AGR relief meaningfully improves the financial viability of Vodafone Idea—it eases near-term cash flows, strengthens lender confidence, and makes bank funding more accessible. Equally, it signals policy support, which can revive investor interest; however, sustained capital infusion and execution on network investments will remain critical for a full turnaround,” a senior analyst said, requesting anonymity.
The relief comes at a time when the No. 3 telecom operator plans to invest ₹45,000 crore over the next three years to revive the company through a strategic reset focused on network expansion, profitability, and customer retention.
Of the proposed capex, ₹25,000 crore will come from bank funding and ₹10,000 crore from non-funded facilities. The company is not considering a fresh equity infusion to bring in a strategic investor, Chief Executive Officer Abhijit Kishore had said in January. However, industry analysts say that a complete revival will hinge on fresh equity infusion, government dilution of its stake, and conversion of additional government debt into equity.
Vi’s total debt stood at ₹2.4 trillion as of December 2025, according to an HSBC report, including AGR dues, deferred spectrum payments, and bank debt. Deferred spectrum payments of about ₹49,000 crore over the next three years are expected to be met through Ebitda expansion, operational efficiencies, and bank funding, Kishore had said earlier. Vi is scheduled to pay ₹7,000 crore in FY27, ₹15,000 crore in FY28, and ₹27,000 crore in FY29.
Vi relief could prompt Airtel to seek similar reconsideration
Industry executives said the reduction of Vodafone Idea’s AGR dues by more than a quarter following reassessment could prompt Bharti Airtel to again approach the government for similar relief. Bharti Airtel recently paid around ₹9,200 crore to the DoT towards AGR dues, which currently exceed ₹40,000 crore. The company has already paid about ₹18,000 crore earlier.
The country’s second-largest telecom operator had earlier urged the DoT to reassess and recalculate its dues, including computation errors, arithmetical errors, and omissions, on similar lines to Vi, but did not receive any relief. The government has maintained that Airtel would need to approach the Supreme Court to seek similar relief.
Queries to Airtel did not elicit a response until press time.
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