New Delhi, December 31, 2025: The Union Cabinet has reportedly approved an interest-free moratorium of five years on Vodafone Idea’s pending Adjusted Gross Revenue (AGR) dues, according to CNBC-Aawaz reports.
Under the proposed relief package, the government would freeze the outstanding AGR liability — exceeding ₹83,000 crore — for a period of several years without accruing further interest. After the moratorium period, Vodafone Idea (Vi) would be required to pay the outstanding arrears in multiple instalments, with the total payable amount likely to be significantly reduced following a reassessment of the dues by an official committee.
This comes after the Union Cabinet has approved a relief package for Vodafone Idea (Vi) on its long-pending adjusted gross revenue (AGR) dues, providing a significant breather to the debt-laden telecom operator. The decision follows a Cabinet meeting held on Wednesday, where the government considered the company’s request for relief on interest, penalties, and interest on penalties that form a large part of its AGR liabilities, as per reports of CNBC-Aawaz.
According to earlier brokerage estimates, Vodafone Idea’s aggregate AGR dues stood at around Rs 78,000 crore as of Q2 FY26, with interest and penalties accounting for the majority of the outstanding amount. Analysts had expected the government to consider a partial or full waiver of interest-related components, which could translate into relief of nearly $8 billion for the telecom operator.
Vodafone Idea has been under severe financial stress, with AGR dues of about Rs 83,400 crore and annual payments of nearly Rs 18,000 crore scheduled from March 2025. The company has repeatedly warned that its survival depends on external funding support, as lenders remain cautious due to its weak balance sheet. Vi employs over 18,000 people and serves close to 198 million subscribers across India.
