Vodafone Idea edges closer to AGR liability relief

The Indian government is weighing a major cut to Vodafone Idea’s massive adjusted gross revenue (AGR) dues, including a four- to five-year halt on interest payments, The Economic Times reported. A committee will reassess the operator’s INR830 billion ($9.2 billion) AGR liability, take feedback from the Department of Telecommunications and the company, and then set a revised amount that could be reduced by as much as half.

The move follows a September decision by India’s Supreme Court allowing the government to re-examine Vodafone Idea’s AGR obligations. In April, the state increased its stake in the debt-laden operator from 26.4 per cent to 49 per cent by converting INR369.5 billion of spectrum auction dues into equity. Vodafone Idea, India’s third-largest mobile operator, had 197 million subscribers at the end of September, down from about 261 million in Q3 2020.