Vi gets govt lifeline

Panel to reassess amount that will be binding on both

- URVI MALVANIA

THE UNION CABINET on Wednesday approved a fresh relief package for Vodafone Idea, freezing its adjusted gross revenue (AGR) dues at ₹87,695 crore as on December 31, 2025, granting a five-year interest-free moratorium on payments, and clearing the way for a reassessment of the capped statutory charge.

The move offers near-term relief to the financially stressed telecom operator while deferring a final resolution of its liabilities.

The measures are aimed at protecting the government's financial interest as it holds about 48.9% equity in Vi, while ensuring orderly recovery of statutory dues, preserving competition in a highly concentrated telecom market, and safeguarding services for the company's roughly 200 million subscribers, officials said.

Payments on the frozen amount will now begin only from FY32 and be spread out until FY41, providing the company with a significant cash-flow reprieve over the next several years, sources said.

In parallel, the frozen AGR dues will be reassessed by the department of telecommunications under the deduction verification guidelines issued in 2020, taking into account audit reports and reconciliations. The reassessment will be undertaken by a government-appointed committee, whose decision will be binding on both the Centre and the company, sources added.