Vodafone Idea May Get 4–5 Year AGR Dues Moratorium, Potentially Halving Liabilities

Vodafone Idea May Get 4–5 Year Interest-Free AGR Dues Moratorium, Liabilities Could Be Halved.

The government is reportedly considering offering Vodafone Idea (Vi) an interest-free moratorium of four to five years on over ₹83,000 crore of pending adjusted gross revenue (AGR)-linked dues, according to The Economic Times. The move aims to provide immediate relief to the cash-strapped telecom operator.

Sources say that after the moratorium, Vi would repay the dues in six instalments, with the total liability expected to be cut by nearly half following a reassessment. A committee led by a secretary-level official—serving or retired—will examine submissions from both the Department of Telecommunications (DoT) and Vi before finalising the payable amount.

The proposal awaits Cabinet approval and could be announced in the coming weeks. Under the current schedule, Vi is required to pay over ₹18,000 crore in March 2026 as its first instalment, with previous moratoriums having accrued interest. Vi and Bharti Airtel currently pay around 29–30% compound interest annually on outstanding AGR dues.

Under the proposed relief, Vi’s dues would be frozen with no interest accrual, while Bharti Airtel would continue repayments as scheduled. The Centre, Vi’s largest shareholder with a 48.99% stake, has converted part of its dues into equity. Other major shareholders include the Aditya Birla Group (9.5%) and the UK’s Vodafone Group Plc (16.07%).

Resolution of the AGR issue could pave the way for Vi to raise fresh capital, including a planned ₹25,000-crore equity infusion, potentially diluting the government stake further. Additionally, Tillman Global Holdings, a New York-based private equity firm, is reportedly in talks to invest $4–6 billion in Vi, contingent on AGR relief. Successful resolution may attract other investors as well.