The Indian government is reportedly evaluating the possibility of granting limited relief to Vodafone Idea Ltd in connection with its additional adjusted gross revenue (AGR) dues amounting to ₹9,450 crore. The move comes as authorities review potential errors and duplicate entries in the Department of Telecommunications’ (DoT) demand calculations for the period up to FY2017.
This review follows a Supreme Court ruling on October 27, which permitted reassessment of discrepancies in the DoT’s computation of AGR liabilities. Acting on this decision, the DoT is consulting with other relevant ministries and the Solicitor General’s office to determine the extent of possible corrections.
Vodafone Idea, which filed an amended plea in September challenging the DoT’s revised demand, has urged the government to recalculate its AGR liability. The company is already facing an upcoming payment of around ₹18,000 crore in AGR dues, scheduled for March 31, 2026.
If approved, the relief would apply only to the ₹9,450-crore additional demand under review and would not extend to the broader AGR obligations. Nonetheless, even limited relief could ease some of the financial pressure on the debt-laden telecom operator, which continues to grapple with mounting dues and the need for operational turnaround.
The government’s final stance on the matter is still pending, but the decision will be closely monitored by the telecom sector and investors, given its potential impact on Vodafone Idea’s financial stability and future prospects.
Summary:
The Indian government is considering a partial reprieve for Vodafone Idea by reassessing its ₹9,450-crore additional AGR dues for possible calculation errors, following a Supreme Court directive. While the review could bring limited financial relief, the company still faces an ₹18,000-crore AGR payment due in 2026. The final outcome remains under government deliberation.
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