Vodafone Idea AGR Dues: No Decision Taken By Government Yet, Says Scindia — Profit Exclusive
Telecom Minister Jyotiraditya Scindia's comments sent shares of Vodafone Idea sliding by more than 3% on Tuesday.
The government has not yet taken a decision on the company’s adjusted gross revenue dues and will stand by the Supreme Court’s order, according to Minister of Communications of India Jyotiraditya Scindia.
The comments dampened hopes of relief for the debt-laden telecom operator, which has been seeking easier terms for repaying its massive AGR liabilities, and sent shares of the company sliding by more than 3% on Tuesday.
“The government has not taken any decision on Vodafone Idea’s AGR dues as of now,” Scindia told NDTV Profit in an interview. “We will stand by the Supreme Court’s order.” Asked about any relief measures, he added, “No decision from the government side as of now.”
The telecom sector is an important part of India’s growth, Scindia said, but on the AGR issue, “We have to follow the Supreme Court’s directions.”
On May 19, the Supreme Court dismissed fresh pleas by Vodafone Idea, Bharti Airtel Ltd., and Tata Teleservices Ltd. seeking relief on pending AGR dues, terming the petitions “misconceived”. A bench headed by Justices JB Pardiwala and R Mahadevan said the issue lies within the executive’s domain and the judiciary would not intervene. “Don’t make us a party,” the bench told Vodafone Idea’s counsel.
Vodafone Idea argued it had paid over Rs 50,000 crore and noted the government now owns nearly 50% of the company after converting debt to equity. The court responded that while the government is free to support the firm, it cannot be compelled by the judiciary.
The Department of Telecommunications, in a letter dated April 29, reiterated it cannot consider further concessions on AGR dues, citing the Supreme Court’s 2020 ruling. It pointed out Vodafone Idea’s partial relief through the conversion of Rs 36,950 crore of spectrum dues into equity, raising the government’s stake to 49%.
Vodafone Idea, struggling under massive debt, is facing a critical financial crunch. Its board was scheduled to consider fundraising options and approve financial results on May 30, the company had said earlier. Possible routes include rights issues, public offers, private placements, or other permissible methods.
Adding to the pressure, a four-year moratorium on AGR payments expires in September, with repayments set to resume from March 31, 2026. Vodafone Idea will then need to pay Rs 18,000 crore annually for six years—more than double its current annual operational cash generation of Rs 8,400–9,200 crore. Banks have refused fresh loans, and the government has ruled out further financial aid after its recent debt-to-equity conversion.
Industry analysts note that Vodafone Idea’s options for further debt restructuring are severely limited, underscoring the company’s precarious financial position.
