NEW DELHI — India’s third-largest telecom operator Vodafone Idea (Vi) has secured significant relief on its adjusted gross revenue (AGR) obligations, after the Department of Telecommunications granted the company a 10 year pause on major payments, a move expected to ease balance sheet stress and improve its ability to raise fresh bank funding.
The relief comes at a crucial time for Vi, which is seeking capital to expand 4G Network to 5G network in order to stay competitive in India’s rapidly evolving telecom market dominated by stronger rivals.
Under the revised payment structure, Vi will be required to pay a capped amount of INR124 crore per year for six years starting March 2026, followed by INR 100 crore annually for the next four years beginning March 2032. The company disclosed these details in a regulatory filing to the Bombay Stock Exchange on Friday.
During this 10 year window, the company’s AGR liabilities will be reassessed and finalised by a government-appointed committee, providing Vi clarity on its long-term dues. Payments on the reassessed amount will begin from March 2036 and continue annually until March 2041.
Industry watchers see the decision by the Department of Telecommunications as a lifeline for Vi, as the reduced near-term outgo is expected to free up cash flows, support network investments and strengthen discussions with lenders for long-term capital expenditure funding.
For Vodafone Idea, which has been grappling with high debt and intense competition, the AGR relief is viewed as a critical step toward stabilising operations and sustaining its presence in the Indian telecom landscape.
