New Delhi, Jan 9 Vodafone Idea said on Friday that its adjusted gross revenue (AGR) dues for the period FY 2006–07 to FY 2018–19 will remain frozen from December 31, 2025, and it will repay the liability in staggered instalments through 2041.
Shares of the telecom operator rose in early trade, hitting an intraday high of Rs 12.40 on the BSE, up 7.8 per cent, and were trading at Rs 12.05 on the NSE at 9:55 a.m, up 4.78 per cent.
Under the repayment plan, the company said in an exchange filing that it will pay Rs 124 crore annually for six years from March 2026 to March 2031, followed by Rs 100 crore annually from March 2032 to March 2035. The balance of the AGR dues will be paid in equal annual instalments from March 2036 to March 2041.
Department of Telecommunications (DoT) will constitute a committee to reassess the AGR liability, and the committee’s decision will be final, the debt laden telecom operator said.
Vodafone Idea has been grappling with a prolonged financial crisis marked by intense price competition and high debt following redefinition of AGR.
Adjusted Gross Revenue (AGR) dues refer to payments owed by telecom companies to the government based on their (AGR). It is the revenue on which telecom operators must pay license fees and spectrum usage charges. It is defined to include all revenues, even non-telecom income (like interest, rent, asset sales).
The company has reported persistent losses, decline in subscriber base and constrained capacity to invest in network expansion, even as competitors accelerated 4G and 5G rollouts.
The relief measures approved by the Union Cabinet aim to protect the interest of the government, enable orderly payment of dues to the Centre, ensure competition in the sector and safeguard the interests of 20 crore consumers of Vodafone Idea, according to analysts.
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