₹23,649 crore relief: DoT review trims Vi AGR dues, allows staggered payment till FY41

The Department of Telecommunications (DoT) has finalised the adjusted gross revenue (AGR) dues of Vodafone Idea Limited at ₹64,046 crore as of December 31, 2025, marking a sharp reduction from the earlier provisional estimate of ₹87,695 crore. The revision, a ₹23,649 crore deduction, follows directions from the Supreme Court of India, which had allowed the government to consider the company’s grievances on the matter. 

In a stock exchange filing on April 30, Vodafone Idea said the reassessment was carried out by a designated committee constituted by the DoT. The earlier figure had been “subject to reassessment by the DoT and final approval by a Committee,” the company noted, adding that the final amount has now been formally communicated. 

The revised dues will be settled over an extended timeline, offering the telecom operator significant breathing room. As per the DoT’s plan, Vodafone Idea will pay a minimum of ₹100 crore annually over four years, from FY32 to FY35. 

The remaining outstanding amount will then be cleared in six equal annual instalments between FY36 and FY41, effectively spreading the repayment over a decade. 

The staggered payment structure is expected to ease near-term cash flow concerns while allowing the company to focus on operational recovery and growth. 

Big relief at a crucial time

In December 2025, the government had approved a partial moratorium on Vodafone Idea’s dues, pegging them at ₹87,695 crore and pushing repayments into the next decade, easing immediate liquidity pressures for the cash-strapped telco. 

The latest move by the DoT adds to that relief, especially as the company was staring at a ₹16,400 crore payout due in March 2026. Despite these measures, Vodafone Idea continues to carry a massive debt load of ₹2 lakh crore, largely made up of statutory liabilities. 

Over the past few years, the government has stepped in multiple times to stabilise India’s third-largest telecom operator. As part of the 2021 telecom relief package, a portion of the company’s dues was converted into equity, eventually increasing the government’s stake to 48.99%, making it the largest shareholder. 

This followed an earlier conversion in February 2023, when nearly ₹16,000 crore of interest on deferred spectrum and AGR dues was turned into equity, translating into a roughly 33% stake at the time. The support continued with another major conversion in April 2025, when ₹36,950 crore of spectrum auction dues was converted into equity.