Centre freezes Vodafone Idea’s AGR dues for five years

The Union Cabinet has decided to freeze Vodafone Idea Ltd’s Adjusted Gross Revenue (AGR) dues for five years, an official said, giving the telco breathing room as it seeks to regain financial stability and raise funds for its survival.

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“The Union Cabinet has … in pursuance of the orders of the Hon’ble Supreme Court … decided to freeze the AGR dues of Vodafone Idea Ltd as on 31st December 2025 at Rs.87,695 crore,” a senior official said on Wednesday (December 31, 2025).

“The payment of this amount is being rescheduled over FY 2031-32 to FY 2040-41.”

“The AGR dues frozen as on 31.12.2025 shall also be reassessed by DoT based on Deduction Verification Guidelines dated 03.02.2020/audit reports,” the official said. “The outcome shall be decided by a committee appointed by the Government and that shall be binding on both parties.”

The Union government has a 49% equity stake in VIL. The freezing of the dues will “ensure competition in the sector and protect the interest of 20 crore VIL consumers,” the official said.