Vodafone Idea Ltd. has confirmed it has received communication from the Department of Telecommunication (DoT) regarding the adjusted gross revenue-linked dues.
The cash-strapped telecom operator has confirmed receiving a relief from the DoT, freezing the AGR dues and outlining a staggered payment structure that extends through 2041.
Under the new terms, the company’s total liability is frozen, preventing the accumulation of further interest on these specific legacy dues, the company confirmed in an exchange filing.
As per the DoT directive, Vodafone Idea will follow a three-tiered repayment schedule designed to ease immediate cash flow pressures.
For the first six years, from March 2026 to March 2031, the company is capped at paying a maximum of Rs 124 crore annually.
This will be followed by annual payments of Rs 100 crore for the subsequent four years, ending in March 2035.
Vodafone Idea has further confirmed that the DoT has mandated the constitution of a committee to reassess the total AGR dues.
The remaining balance, as determined by this reassessment, will be payable in equal annual instalments over six years, from March 2036 to March 2041.
This comes on the back of widespread media reports last week, signalling a potential five-year moratorium on the company’s AGR dues, which was thought to be below the street expectations.
Reacting to the Vodafone Idea relief, Piyush Pandey, telecom analyst at Centrum Broking, believes this serves as a major relief for the telecom operator, potentially making it easier for the company to raise funds.
“Significant relief in terms of cash flows. Fund raise will be very easy for Vodafone Idea now,” he said.
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