Vodafone-Idea dues frozen by Centre; timeline relaxed
ECONOMY – TAXATION
1 JANUARY 2026
- The Union Cabinet approved the freezing of Vodafone Idea Ltd. (VIL)’s adjusted gross revenue (AGR) dues, amounting to ₹87,695 crore, for a period of five years.
- The relief, however, may be partial as a note from the government stressed, “AGR dues pertaining to FY 2017-18 and FY 2018-19 [that were already finalised vide a 2020 Supreme Court order] shall be payable by M/s VIL over the period FY 2025-26 to FY 2030-31 without any change.”
- Based on Supreme Court orders allowing the government to grant such relaxations, VIL had made a representation in recent weeks. After considering the request, the Union government decided to freeze the dues, and reschedule them “over FY 2031-32 to FY 2040-41”, the note said.
- The note said that the telecom sector was “highly concentrated”, and that the government “would like to have multiple players in such critical sectors”.
- The Union government has a 49% equity stake in VIL, as a result of a previous relief intervention for the struggling firm. The move will protect the interest of 20 crore VIL consumers, the note said.
- “The above steps will protect the interest of GOI stake of 49% in VIL, enable orderly payment of dues to Government of India by way of Spectrum Auction Charges and AGR Dues, ensure competition in the sector and protect the interest of 20 crore VIL consumers,” the note said.
