No AGR relief for Vodafone Idea: MoS Telecom

The telecom department is not contemplating providing any relief to Vodafone Idea with regard to adjusted gross revenue, Minister of State for Communications Chandra Sekhar Pemmasani said on Monday.

Photograph: Anushree Fadnavis/Reuters

“We have recently converted a lot of their debt into equity.

“The government has done whatever we thought we could do. At this time, we do not have any discussion or plan to change anything other than what we have done,” Pemmasani said.

The government has become the single largest shareholder in Vodafone Idea after acquiring shares worth Rs 36,950 crore in lieu of outstanding spectrum auction dues in March.

Earlier, the government had acquired around 33 per cent stake in 2023 in lieu of statutory dues worth over Rs 16,000 crore.

Vodafone, in its affidavit before the Supreme Court, had said that it will not be able to survive without government support.

The company’s AGR liability at the end of the June 2025 quarter stood at around Rs 75,000 crore.

Vodafone Idea, along with other players like Bharti Airtel, BSNL, MTNL, etc., had contested claims of the Department of Telecom on the definition of AGR.

After several years of litigation, the Supreme Court in October 2019 ruled in favour of the DoT and asked the telcos to clear the entire dues as claimed by the government.

The company needs to pay AGR liability in six equal instalments post the moratorium period, starting from March 31, 2026.

When asked about the status of spectrum allocation for satcom services by companies like Elon Musk-led Starlink, Bharti Group-backed Eutelsat OneWeb, the minister said that the discussion on pricing is going on, and the spectrum will be allotted after it is finalised.

The minister said that neither the satcom players can host data of Indians outside nor will they be allowed to provide services in foreign countries using a gateway set-up in the country.