Banks to review Vodafone Idea funding plan after AGR relief

Banks are taking a fresh look at lending to Vodafone Idea after the government's relief on adjusted gross revenue (AGR) dues. Lenders had largely stayed away from new exposure to the telecom operator, citing its heavy statutory liabilities, including deferred spectrum payments and AGR dues, along with weak cash flows and concern over its ability to repay additional debt.

The AGR relief package has eased some of that pressure, prompting banks to reassess funding proposals and revival plans tied to the company. Any new lending is likely to hinge on clearer visibility of Vodafone Idea’s long-term viability, including how it manages remaining dues, improves operations, and sustains its ability to service existing and future loans.