Cabinet Freezes Vodafone Idea AGR Dues of ₹87,695 Crore: Govt Sources

The Union Cabinet has approved the rescheduling of Adjusted Gross Revenue (AGR) dues amounting to ₹87,695 crore payable by Vodafone Idea Limited (VIL), citing public interest, the need to avoid excessive concentration in the telecom sector, and the interest of nearly 20 crore consumers, according to official sources.

The decision follows the Supreme Court's observations that reconsideration of AGR-related issues falls within the policy domain of the Union Government when guided by the larger public interest.

As per the Cabinet decision, AGR dues of Vodafone Idea frozen as on December 31, 2025, amounting to ₹87,695 crore, will be rescheduled for payment over the period from FY 2031-32 to FY 2040-41. The move is aimed at ensuring financial stability of the telecom sector, which is considered critical national infrastructure.

Sources said the Cabinet took note of the highly concentrated nature of the telecom sector and underlined that the continued presence of multiple private players is essential to maintain competition, protect consumer choice, and prevent adverse outcomes such as higher tariffs and reduced service quality. The survival of Vodafone Idea as a viable operator was therefore seen as necessary in the broader interest of the sector.

The Cabinet also considered the interest of around 20 crore Vodafone Idea subscribers, with the decision intended to ensure uninterrupted telecom services across the country. The move is expected to safeguard service continuity while enabling an orderly recovery of government dues.

In addition, AGR dues frozen as of December 31, 2025, will be reassessed by the Department of Telecommunications in accordance with the Deduction Verification Guidelines dated February 3, 2020, based on audit reports. The outcome will be decided by a government-appointed committee and will be binding on both parties.

Officials added that the decision also protects the Government of India's 49 per cent equity stake in Vodafone Idea and balances the need for fiscal prudence with larger public and consumer interest.

At the time of filing this report, Vodafone-Idea shares were trading about 10.81 per cent down at ₹10.87 a share. 

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