Vodafone Idea: AGR Dues, Government Relief & UK Ties

Vodafone Idea seeks AGR relief. Government considers a settlement amid financial struggles and strengthening UK ties. AGR dues, interest, and penalties are under review for resolution.

To make sure, authorities will have to make sure that all telecommunications drivers are dealt with rather in the procedure of providing AGR alleviation– Sunil Mittal’s Bharti Airtel Ltd. and the Tata Group’s cordless service provider have likewise been looking for relief. One alternative controversial is to seek resurgence plans from all operators for any type of giving in, guaranteeing that Vodafone Concept isn’t offered an unreasonable advantage over peers.

The DoT had actually after that estimated VI’s fees at Rs 58,300 crore, yet the telco had self-assessed the charges at Rs 21,500 crore and has actually up until now paid Rs 7,900 crore. Bharti Airtel’s charges, as per the DoT, stood at Rs 44,000 crore, compared to the operator’s own analysis of around Rs 13,000 crore. Bharti Airtel has up until now paid Rs 18,000 crore, including a Rs 5,000-crore impromptu payment.

Vodafone Idea’s Financial Woes

Vodafone Idea was developed by the merger of the British company’s neighborhood device with billionaire Kumar Mangalam Birla’s Concept Cellular Ltd. Reviving it would certainly assist protect competitors in the country’s telecom market and deliver far better returns for India diplomatically by securing the UK more firmly as a companion.

Strengthening connections between the UK and India, which lately authorized a free trade agreement, will particularly profit New Delhi at a time relations with the US have actually soured after President Donald Trump’s go back to the White Residence. Additionally, initiatives to reset ties with neighboring China are only just beginning– making the instance for focusing on relations that are already prospering.

Vi had exceptional AGR as a result of the song of Rs 83,400 crore as of March 2025. As of June 30, its outstanding debt from banks was Rs 1,945 crore and deferred obligation toward spectrum, payable up until FY44, and towards AGR– payable up until FY31– aggregated to Rs 1.99 lakh crore.

The conflict itself refers to how India computes yearly adjusted gross earnings (AGR), a share of which is paid as permit and range fees. While telecom providers have actually tested the method for several years, the court might be much more responsive this time around if the federal government changes its position, among individuals claimed.

Government Intervention and UK Ties

The federal government had actually previously prepared a proposal to forgo off 50% of passion as well as every one of the fines and passion on penalties of the AGR fees. If the proposal was authorized, Vi’s fees would certainly have been lowered by nearly Rs 50,000 crore.

Resolution in the almost 2 trillion rupees ($22.5 billion) financial conflict may come with a waiver of passion and charges, followed by a giving in on the principal, said the people, that asked not to be identified as the discussions are exclusive. Authorities are composing the framework and also considering steps to ensure any kind of offer does not stimulate lawful obstacles from various other telecommunications operators that owe fees, they said.

The High Court on Monday claimed it will listen to Vodafone Idea’s plea looking for a waiver of interest, charges, and passion on charges for modified gross profits (AGR) fees required by the Department of Telecom (DoT) on October 13.

The Indian government, which came to be Vodafone Idea’s 49% investor this year with a debt-to-equity swap, has openly recognized the requirement for a service. A federal government advise informed the Supreme Court last month that “some remedy might be called for” provided public funds are currently bound in the carrier.

Supreme Court Hearing on AGR Dues

Earlier today, Bloomberg, pointing out individuals acquainted with the matter, reported that India is taking into consideration an one-time negotiation of its historical demand for billions of bucks in past-due costs from Vodafone Team Plc’s beleaguered regional endeavor, as the federal government seeks to strengthen ties with the UK.

The arrears have actually hung over Vodafone Idea Ltd., which hasn’t reported a quarterly revenue given that 2016. A negotiation would possibly pave the way for India’s third-largest cordless provider to bring in brand-new financiers, individuals added.

Vi, in its application, has looked for to amend its previous application that sought subduing of the DoT’s added AGR need of Rs 9,450 crore till FY19. The changed application is currently looking for exception from the repayment of rate of interest, penalty and interest on fine on the primary amounts of AGR dues.

Details of AGR Fee Components

Of the overall Rs 1.47 lakh crore of AGR fees that telecom drivers were required to pay by January 2020 as an outcome of the apex court’s order, almost 75% comprised rate of interest, charge and rate of interest on penalty, the companies stated. The permit fee dues completed Rs 92,642 crore while the spectrum usage fee was Rs 55,054 crore, based on the order of September 2020.