AGR dues frozen as DoT grants relief to Vodafone Idea

On Friday, 9 January 2026, Vodafone Idea (Vi) informed stock exchanges that it had received a communication from the Department of Telecommunications (DoT) granting relief in the long-standing Adjusted Gross Revenue (AGR) dispute, which has been a major financial overhang for India’s telecom operators for several years.

In a regulatory filing under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company stated that its AGR dues as of 31 December 2025 have been frozen. These dues relate to the period from FY2006–07 to FY2018–19 and include principal, interest, penalty, and interest on penalty.

Repayment scheduled in phases till 2041

According to the DoT communication, Vodafone Idea will pay a maximum of Rs 124 crore per year over six years, from March 2026 to March 2031. This will be followed by payments of Rs 100 crore per year for four years, from March 2032 to March 2035.

The DoT will constitute a committee to reassess the AGR dues, with its decision to be final, the company said. Any amount determined through this reassessment will be repaid in equal annual instalments from March 2036 to March 2041.

Background to the AGR issue

The AGR dispute stems from a Supreme Court ruling in 2019 that broadened the definition of adjusted gross revenue to include non-telecom income, significantly increasing the dues payable by operators to the government. For Vodafone Idea, this resulted in substantial liabilities, adding pressure to its balance sheet and constraining its ability to invest in network expansion and service improvements.

Impact on Vodafone Idea

The freezing of AGR dues and the extended repayment timeline could provide Vodafone Idea with short-term cash flow relief, potentially easing near-term financial pressure. This may allow the operator greater flexibility in managing operational expenses and supporting ongoing network investments. However, the final impact will depend on the outcome of the DoT-led reassessment and the company’s ability to improve revenues and stabilise its subscriber base in the coming months.

Vodafone Idea added that the disclosure was made for the information of stakeholders and follows its earlier announcement dated 31 December 2025.