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Vodafone Idea crashed more than 10% after reports said the government has approved a relief package on its massive AGR dues but investors remain unsure about the fine print.
Adjusted Gross Revenue (AGR) dues are money telecom companies owe the government based on their total earnings, including fees and penalties.
What’s going on: the teleco company has been struggling for years under a huge pile of AGR dues. This was a long-running dispute between telecom companies and the government over how revenues are calculated.
The case has gone through courts, audits, and repeated appeals, with dues piling up because of interest and penalties.
Now, Union Cabinet has reportedly approved an AGR relief package. Under this, the company’s total AGR liability has been frozen at ₹87,695 crore, meaning the number won’t keep rising.
The government has also reportedly given a five-year moratorium, allowing Voda to pause AGR payments for now. These dues are expected to be repaid over a long stretch from FY32 to FY41.
However, there’s still no clarity on whether interest and penalties will be waived, or continue to apply. That uncertainty spooked investors, sending the stock into a 15% lower circuit, despite the relief.
What it means for Vodafone Idea: this move buys the company time, but not a full escape. Vodafone Idea still carries over ₹83,000 crore in AGR liabilities and needs fresh funding to survive. Banks remain cautious, and the telco has repeatedly said its future depends on timely support.
