Vodafone Idea Gets 5-Year AGR Dues Moratorium from Cabinet: A Lifeline for Telecom Giant

• Cabinet approved a five-year moratorium on Vodafone Idea's Adjusted Gross Revenue (AGR) dues on December 31, offering significant relief to the debt-ridden telecom company.
• Approximately 87,695 crore rupees of AGR dues are frozen and rescheduled for payment between financial years 2032 and 2041; 2018-2019 dues to be paid over the next five years.
• The decision follows a Supreme Court hint and aims to reduce immediate payment pressure, helping Vodafone Idea manage cash flow.
• The government became Vodafone Idea's largest shareholder by March 2025, converting 36,950 crore rupees of dues into a 49 percent equity stake, demonstrating its commitment to the company's survival.
• Despite the relief, Vodafone Idea's shares declined over 3 percent, highlighting investor concerns about long-term funding and the company's future turnaround strategy.

Why It Matters: Cabinet's 5-year AGR moratorium offers Vodafone Idea a crucial lifeline, but long-term challenges remain.