Telecom Giants Face Mounting Debt: What Lies Ahead?

Telecom operators in India owe over Rs 1.77 lakh crore to the government in adjusted gross revenue dues as of FY 2024-25. Vodafone Idea has the largest share, with Rs 89,952 crore, followed by Bharti Group and Tata Group. A committee is reassessing Vodafone Idea's frozen dues.

In a significant development, official data presented to Parliament reveals that India's telecom operators owe over Rs 1.77 lakh crore in adjusted gross revenue (AGR) dues up to the financial year 2024-25. This daunting figure highlights the immense financial burden shouldered by the industry.

The debt-ridden Vodafone Idea finds itself at the forefront, with a staggering liability of Rs 89,952 crore. Following closely are the Bharti Group at Rs 51,091 crore and the Tata Group at Rs 20,426 crore. The data further places MTNL and Reliance Jio Infocomm with dues of Rs 14,462 crore and Rs 1,984 crore, respectively.

In a move to potentially alleviate some of the pressure on Vodafone Idea, the Department of Telecom has constituted a committee to reassess frozen dues. Comprising a retired Secretary-level officer and a representative from the Comptroller and Auditor General of India, the committee's findings, due within two months, will be binding on both the Department of Telecom and Vodafone Idea Limited.