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Cabinet Freezes Vodafone Idea's Rs 87,695 Crore AGR Dues in Major Relief

The Union Cabinet has approved a major relief package for Vodafone Idea, freezing its Rs 87,695 crore Adjusted Gross Revenue (AGR) dues. These frozen dues will now be repaid over a 10-year period starting from the financial year 2031-32. However, the relief does not apply to AGR liabilities for FY18 and FY19, which must be paid as per the existing schedule between FY26 and FY31. The move aims to protect the government's stake, ensure sector competition, and safeguard the interests of the company's vast subscriber base, though the news initially pressured the company's stock price.

Key Points: Cabinet Freezes Vodafone Idea AGR Dues of Rs 87,695 Crore

  • Rs 87,695 crore dues frozen
  • Repayment from FY32 to FY41
  • FY18-19 dues unchanged
  • Shares fell over 10%
2 min read

Cabinet gives big relief to Vodafone Idea, freezes Rs 87,695 crore AGR dues; shares slip

The Union Cabinet freezes Vodafone Idea's Rs 87,695 crore AGR dues, allowing repayment over 10 years from FY32. FY18-19 dues remain payable.

"aimed at protecting the government's nearly 49 per cent stake... and safeguarding the interests of around 20 crore subscribers - Government Statement"

New Delhi, Dec 31

In a major relief for debt-hit Vodafone Idea, the Union Cabinet on Wednesday approved a support package that freezes a large part of the telecom company's adjusted gross revenue dues.

As per the decision, Vodafone Idea's AGR dues amounting to Rs 87,695 crore have been frozen as of December 31, according to reports.

These dues will not have to be paid immediately and will instead be repaid over a long period of 10 years, starting from the financial year 2031-32 (FY32) and continuing till FY41.

The report said the frozen amount will be reassessed by the Department of Telecommunications (DoT) at a later stage.

However, the relief does not apply to AGR liabilities related to FY18 and FY19.

These dues will remain unchanged and will have to be paid by Vodafone Idea between FY26 and FY31 as per the existing repayment schedule.

According to reports, the frozen AGR dues will be reviewed by the telecom department based on Deduction Verification Guidelines and audit reports.

This review process is expected to give Vodafone Idea some flexibility in managing its long-term financial burden.

A government-appointed committee will take a final call on the reassessed amount.

The Cabinet's move is aimed at protecting the government's nearly 49 per cent stake in Vodafone Idea, ensuring an orderly repayment of dues, maintaining competition in the telecom sector, and safeguarding the interests of around 20 crore Vodafone Idea subscribers across the country.

Reports also clarified that the AGR dues for FY18 and FY19 were already finalised under a 2020 order of the Supreme Court of India and therefore will continue to be payable without any relief.

Following the development, Vodafone Idea shares came under pressure in the market. Around 3:05 pm, the stock was trading at about Rs 10.8 on the National Stock Exchange (NSE), down 10.36 per cent.

- IANS

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Reader Comments

P
Priya S
As a Vi customer for 8 years, I'm relieved. I was worried about porting my number and losing my long-standing plan. This decision protects 20 crore subscribers like me. The government had to step in.
R
Rohit P
Freezing dues till 2031? That's a 10-year lifeline! While I understand the need to save jobs and competition, it sets a worrying precedent. What about strict financial discipline for corporates? This feels like a bailout for poor management.
S
Sarah B
The stock is down 10% today despite this news. The market seems skeptical about their long-term future even with this relief. The key will be whether they can actually turn the business around in the next decade.
V
Vikram M
Good that the dues for FY18 and FY19 from the Supreme Court order are untouched. You can't just wipe the slate clean. This package is a balance - providing relief but also ensuring some accountability remains. Jai Hind.
K
Karthik V
Finally some clarity for the telecom sector. This uncertainty was hurting everyone. Now Vi management has no excuse. They must focus on improving pathetic network coverage in many areas. My calls still drop constantly!

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