The Indian government has capped Vodafone Idea’s adjusted gross revenue (AGR) dues at $13.79 million per year for the next six years. The move aims to ease cash flow pressure on the debt-saddled telecom operator.
The decision offers near-term relief to India’s third-largest carrier, which has struggled with heavy debt and declining market share.
Following the announcement, Vodafone Idea’s shares jumped 9 per cent in early trading. However, gains faded later in the day as investors remained cautious about the company’s funding needs for its planned 5G rollout. By early afternoon, the stock traded 0.7 per cent higher.
The relief follows a partial moratorium approved on December 31, under which the government froze $9.76 billion in Vodafone Idea’s dues and deferred repayments. At the time, the company said it had not received formal communication on the decision.
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Vodafone Idea’s liabilities stem from the government’s method of calculating licence fees and spectrum charges. Telecom operators have long disputed the formula.
Vinit Bolinjkar, Head of Research at Ventura Securities, said the revised repayment plan offers “ease of life” and shows government backing. He added that these steps improve Vodafone Idea’s survival prospects.
However, Bolinjkar warned that the company still needs a clear funding strategy and strong growth plan, especially as it prepares for capital-intensive 5G investments.
Vodafone Idea said that after the first six years, annual payments will be capped at 1 billion rupees ($11.1 million) for another four years. The company will then settle the remaining balance in equal instalments over the following six years.
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The Indian government owns 49 per cent of Vodafone Idea, while UK-based Vodafone Group holds about 16 per cent.
Vodafone Idea has reported losses every quarter since its 2018 merger. The company has continued to lose subscribers to rivals Bharti Airtel and Reliance Jio.
Burdened by more than $22 billion in debt, Vodafone Idea has struggled to expand its network at the pace of its competitors.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
