Good Days Ahead for Vi? Government May Offer Major Relief, Hope of Moratorium on ₹83,000 Cr AGR Dues

New Delhi (The Uttam Hindu): Vodafone Idea (Vi) is expected to receive major relief from the government, which could significantly ease the company’s financial stress. Vi currently has adjusted gross revenue (AGR) dues of over ₹83,000 crore, and the government is considering granting an interest-free moratorium of four to five years on these pending payments.

According to sources, once the moratorium period ends, Vi will be required to repay the outstanding amount in six installments. However, after a reassessment, the total AGR liability could be reduced to nearly half. For this purpose, a committee will be formed under the chairmanship of a secretary-level officer. The panel will hear both the Department of Telecommunications and the company before submitting its recommendations.

Based on the committee’s report, the proposal will be placed before the Union Cabinet for approval. Vi is scheduled to pay its first installment of over ₹18,000 crore by next March, which becomes due after the AGR relief package announced in 2021.

Reports suggest that under the proposed relief plan, Vi’s AGR dues will be frozen and no additional interest will be charged during the moratorium period. However, this relief is expected to be exclusive to Vodafone Idea, while Bharti Airtel will have to continue payments as per the existing schedule.

It is noteworthy that Vi has already stated its inability to pay the AGR dues under the current financial conditions. The government holds a 48.99% stake in the company, making it the largest shareholder, which further strengthens expectations of policy-level support.