New Delhi: 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 (AGR) 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)
