India's Cabinet freezes Vodafone Idea AGR dues until 2032-2041

Economic Times
Economic Times
3h ago
3 views
The government approved a moratorium that allows Vodafone Idea to defer ₹87,695 crore AGR dues payable over ten years starting FY32 without interest during the moratorium.
India's Cabinet freezes Vodafone Idea AGR dues until 2032-2041
A What happened
The Union Cabinet approved a moratorium for Vodafone Idea, freezing its ₹87,695 crore adjusted gross revenue dues. These dues will be payable over a ten-year period from the fiscal year 2032 to 2041, with no interest during the five-year moratorium. This decision helps Vodafone Idea manage its debt and operational challenges while protecting government interests and telecom market competition. AGR dues for FY18 and FY19 will still be payable from FY26 to FY31 as previously ordered by the Supreme Court.
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Key insights

  • 1

    Long-term payment spread: Vodafone Idea's adjusted gross revenue dues are spread over 10 years starting FY32, easing immediate financial burdens.

  • 2

    No interest during moratorium: No interest will accrue on dues during the five-year moratorium, helping Vodafone Idea's cash flow management.

  • 3

    Government's strategic interest: The moratorium protects the government's 49% stake in Vodafone Idea and aims to maintain telecom sector competitiveness.

Takeaways

The Cabinet's approval of a delayed payment plan for Vodafone Idea's large AGR dues supports the company's financial viability while protecting government investments and telecom market health.

Topics

Business & Markets Economy World & Politics Policy & Regulation

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