Vodafone Idea confirms government levy relief

Vodafone Idea says India’s Department of Telecommunications has signed off on a long-delayed relief package that locks in the operator’s adjusted gross revenue (AGR) dues up to fiscal 2018. The total, which includes principal, interest, penalties and interest on penalties, will be frozen at the end-2025 level. A DoT committee will recheck the AGR calculations, and its ruling will be final.

Under the plan, Vodafone Idea will pay up to INR1.2 billion (about $13.3 million) a year for six years, then INR1 billion annually until March 2035. The remaining balance will be cleared in equal instalments from March 2036 to March 2041. The move follows government signals of a possible multi-year moratorium on interest tied to INR830 billion in AGR levies. New Delhi now owns 49% of Vodafone Idea after converting INR369.5 billion of spectrum dues into equity in April 2025. Despite the support, the operator has continued to lose users, sliding from 255.7 million subscribers in early 2021 to 170.5 million by the end of 2025, though it remains India’s third-largest mobile carrier.