The government is preparing a new set of relief measures for the telecom industry.
Following the removal of the bank guarantee requirement for past spectrum dues in December 2024, officials are now considering waiving a significant portion of adjusted gross revenue (AGR) dues levied on companies like Vodafone Idea and Bharti Airtel after the Supreme Court’s 2019 ruling.
This initiative could be a game-changer for India’s telecom sector, offering critical financial relief to struggling operators.
According to sources, the Department of Telecommunications (DoT) has held multiple discussions with telecom operators, including Vodafone Idea, where the companies emphasized their financial difficulties.
The proposed relief measures reportedly include waiving 50% of interest and 100% of penalties, along with interest on penalties. If implemented, this could provide telecom operators with financial relief exceeding Rs 1 lakh crore, with Vodafone Idea (Vi) benefitting the most, receiving over half of the relief due to its dire financial condition.
Under this proposal, Vi’s adjusted gross revenue (AGR) dues could be reduced by more than Rs 52,000 crore, Bharti Airtel’s by nearly Rs 38,000 crore, and Tata Teleservices’ by approximately Rs 14,000 crore.
The AGR issue originated from the Supreme Court’s October 2019 ruling, which upheld the government’s interpretation of AGR, leading to dues of Rs 1.47 lakh crore for telcos, including Rs 92,642 crore in license fees and Rs 55,054 crore in spectrum usage charges. Notably, 75% of these dues were attributed to interest, penalties, and interest on penalties.
Vodafone Idea, particularly burdened by these dues, faces questions about its survival, with repayments scheduled to begin in FY26. As of March 2025, industry estimates place Vi’s AGR dues at Rs 80,000–85,000 crore, Bharti Airtel’s at Rs 42,000–44,000 crore, and Tata Teleservices’ at Rs 17,000–19,000 crore.
Vi’s CEO, Akshaya Moondra, disclosed in September 2024 that the company had reopened discussions with the government after the Supreme Court rejected a curative petition for AGR re-computation.
In December 2024, the government eased Vi’s financial strain by waiving the requirement for bank guarantees on past spectrum dues, freeing up Rs 24,800 crore and enabling additional credit from lenders.
If approved, this latest proposal could provide a critical lifeline to Vodafone Idea, bring stability to India’s telecom sector, and promote fair competition among operators.
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