In a major relief to Vodafone Idea, the government has reduced its adjusted gross revenue (AGR) dues till December 31, 2026 by Rs 23,649 crore to Rs 64,046 crore following a reassessment by the Department of Telecommunications (DoT). The DoT reassessed Vodafone Idea’s dues after being directed by the Supreme Court of India to consider relief for the company. As per earlier assessment, AGR dues pending against the telecom company were at Rs 87,695 crore.
Vodafone Idea informed the exchanges that it will be required to pay a minimum of Rs 100 crore annually over four years from FY2031-32 to FY2034-35. The remaining amount will be paid in six equal annual installments from FY2035-36 to FY2040-41. As per the earlier payment schedule, the telco was required to pay Rs 18,000 crore by March 2026.
The government’s intervention follows Supreme Court judgments dated October 27 and November 3, 2025, which stated that there was no legal impediment to the Union Government reconsidering the dues. The Court also cited public interest, including the government’s 49% stake in Vodafone Idea and the interests of its around 20 crore subscribers. Subsequently, the DoT introduced relief measures, including freezing VIL’s AGR dues for the period from FY2006–07 to FY2018–19 at Rs 87,695 crore as on December 31, 2025.
According to Vodafone Idea, AGR payments of Rs 124 crore annually between March 2026 and March 2031, related to dues for FY2018 and FY2019, were not part of the reassessment.
Meanwhile, the company said that the implications of the new payment schedule will be reflected in its Q4 results after discussions with auditors.
After Vodafone Idea, Bharti Airtel has approached the government requesting the conversion of its deferred spectrum dues into equity. The telecom giant has emphasized the need for a level playing field in the implementation of the 2021 telecom reforms package and has called for equitable treatment of all operators, particularly with regard to government relief on statutory dues.
Overall, telecom operators in India owe Rs 1,77,915 crore in AGR dues, including interest, as calculated up to December 31, 2025. Vodafone Idea had the highest liability at Rs 89,952 crore, followed by Bharti Group at Rs 51,091 crore, Tata Group at Rs 20,426 crore, MTNL at Rs 14,462 crore, and Reliance Jio at Rs 1,984 crore.