Government Approves Relief Package for Vodafone Idea

The Indian government has approved a relief package for Vodafone Idea, freezing AGR dues at Rs 87,695 crore with payment rescheduled from FY32 to FY41. The Telecom Department will reassess these dues. This decision aims to protect government interests and ensure competition and consumer protection in the telecom sector.

In a significant move, the Indian Union Cabinet has given the green light to a relief package for the beleaguered telecom giant, Vodafone Idea. The relief involves freezing the Adjusted Gross Revenue (AGR) dues at Rs 87,695 crore and extending the payment timeline from the fiscal year 2032 to 2041, sources have confirmed.

The Department of Telecommunications is set to reassess the frozen AGR dues by applying Deduction Verification Guidelines and audit reports. The ultimate decision will rest with a committee appointed by the government, offering a critical review mechanism to ensure accuracy in financial obligations, sources told PTI.

Notably, the AGR dues for the fiscal years 2018 and 2019, already settled under a Supreme Court order in 2020, will remain payable over FY26 to FY31. This comprehensive package not only serves to uphold the government's 49% stake in Vodafone Idea but also safeguards the interests of approximately 200 million consumers, maintaining competitive balance in the telecom sector.