DoT freezes Vodafone Idea’s AGR dues; to pay ₹124 crore annually over 6 years
New Delhi: Vodafone Idea said on Friday that the department of telecommunications (DoT) has frozen the company’s adjusted gross revenue (AGR) dues for a period of six years as of December-end.
The order, which provides temporary relief to the stressed telecom operator, includes principal, interest and penalties. As of the end of December, the company’s AGR dues were in February: ₹87,695 crore.
Based on the freeze, the telco’s annual expense on AGR payments over the next six years from March 2026 to March 2031 will be: ₹744 crore, maximum ₹124 crore per year.
Vodafone Idea said that it also had to pay in the exchange application ₹100 crore annually for four years from March 2032 to March 2035. “The remaining AGR dues must be paid in equal annual installments for 6 years, i.e. from March 2036 to March 2041,” the company said.
Vodafone Idea’s shares increased by 7.8 percent ₹12.4 in early trading on the National Stock Exchange following the news.
This statement from Vodafone Idea came after the Cabinet decided to give breathing space to the telecom operator on December 31. ₹87,695 crore AGR dues by FY 2019 as of end-December. The government has approved the payment plan for the company to clear frozen AGR dues between FY32 and FY41.
“A committee will be constituted by DoT to re-evaluate the AGR dues and the decision of this committee will be final. Thereafter, the re-assessed amount will be repaid in equal annual installments between March 2036 and March 2041,” Vodafone Idea said.
AGR is the revenue base used to calculate license fees and spectrum usage fees payable to the government.
Over the next few months, DoT will conduct a detailed reassessment. ₹87,695 crore AGR dues of the company.
The reassessment process to arrive at Vodafone Idea’s final AGR liability is expected to take four to five months, Mint reported on January 1, citing informed officials.
The second official said that the exercise will include re-evaluation at each local environmental level, and that the history and licenses of Vodafone Idea subsidiaries will be reviewed before the merger, adding that the final amount is expected to decrease.
DoT will also seek detailed, general and annual information from Vodafone Idea to resolve discrepancies in dues. The final outcome of the AGR reassessment study will be decided by a government committee and will be binding on both the government and the company. This indicates that the company’s AGR liability may subsequently decrease after recalculation.
While the company has some more time in its timeline to pay AGR dues, concerns over spectrum dues remain ₹1.17 trillion and the final AGR amount was clarified after the re-evaluation, analysts said.
Government holds around 49% stake in Vodafone Idea after near-conversion ₹53,083 crore dues were transferred to equity capital in two tranches in February 2023 and April 2025. ₹Total state dues 2 trillion, approx. ₹1.17 trillion is related to spectrum payments instead of AGR.
Brokerage firm Emkay Global maintained its “sell” rating, which is the target price of the stock, in its note dated January 1. ₹6.
“Contrary to street expectations of at least 50% waiver, the cabinet has not provided any waiver of pending dues linked to AGR,” the brokerage firm said in a note.
“While the relief package addresses AGR dues, Vi (Vodafone Idea) also ₹1.2 trillion deferred payment obligations for spectrum with significant scheduled payments between FY26 and FY44. Current EBITDA is insufficient to meet capital expenditures (capex) or spectrum debt repayment requirements. Emkay Global added that the company will need additional assistance/funding to alleviate such challenges.
A Supreme Court order in October had allowed the government to reassess and calculate AGR dues up to FY 2017.
