Vodafone Idea may get 20-year AGR payment window as Centre mulls relief: Report

Among the options under consideration is extending the AGR repayment term from six to 20 years, alongside replacing the current compound interest model with simple interest, ET reported.

Shares of Vodafone Idea jumped over 4% and was trading at ₹6.83 apiece at 11.20am on Tuesday.

The potential shift could reduce Vi’s annual payments substantially from around ₹18,064 crore to roughly ₹15,000 crore, or even lower if the tenure is stretched.

Some government officials are reportedly sceptical about the telco’s ability to meet even the reduced obligations, given its limited cash flow.

The developments follow a recent Supreme Court setback for Vi, which dismissed the company’s petition seeking a waiver of around ₹30,000 crore in interest and penalties related to AGR dues. The court termed the plea “shocking” and “misconceived.”

Vi continues to face pressure to pay additional liabilities, which it says total approximately ₹1.19 lakh crore, including post-2021 spectrum auction dues.

In a letter to the Department of Telecommunications, Vi CEO Akshaya Moondra warned that without government relief, the company could face insolvency by FY26.

“Without GoI’s timely support on AGR, VIL will not be able to operate beyond FY26,” the letter stated, adding that the lack of bank funding and moratorium on spectrum payments would freeze capex, shrink the subscriber base, erode EBITDA, and render the government’s equity stake worthless.

Moondra also cautioned that Vi’s collapse could lead to a duopoly in India’s telecom sector, adversely impacting market competition and future spectrum auctions.