The Government of India is reportedly considering a one-time settlement of Vodafone Idea’s adjusted gross revenue (AGR) dues, a move aimed at resolving a long-standing dispute and strengthening diplomatic and trade relations with the United Kingdom, according to a Bloomberg report.
The proposed resolution framework is expected to include a waiver of interest and penalties, followed by a concession on the principal amount. The plan, currently being drafted by government officials, could offer significant relief to the debt-laden telecom company, which has been struggling under the weight of hefty AGR liabilities.
The move comes as the Supreme Court is set to hear Vodafone Idea’s plea challenging the Department of Telecommunications’ (DoT) additional AGR demand of ₹9,450 crore on Monday, October 6.
The plea argues that the additional dues go beyond the scope of the Supreme Court’s earlier AGR ruling and include amounts already settled in previous orders, effectively amounting to a reassessment, which the apex court had earlier prohibited.
During earlier hearings, Solicitor General Tushar Mehta, representing the Centre, had informed the court that the government does not oppose Vodafone Idea’s petition but emphasized the need for a practical resolution, noting that the government itself holds a 49% equity stake in the telecom operator.
The Supreme Court had twice deferred the hearing—on September 19 and September 26—before listing the matter again for October 6, signaling the possibility of a final decision.
If approved, the government’s proposed settlement could mark a crucial turning point in the AGR saga and potentially pave the way for policy stability in India’s telecom sector.
