News Delhi: Shares of Vodafone Idea (Vi) soared nearly 8 percent on Friday, August 22, after reports emerged that the Prime Minister’s Office (PMO) may soon review and finalize a relief package for the debt-laden telecom operator.
According to Livemint, the Department of Telecommunications (DoT) has informally submitted proposals to the PMO, outlining measures to ease Vi’s financial stress. These include a two-year extension of the moratorium on statutory dues, smaller annual installments instead of lump-sum payments, and waivers on penalties and interest related to the company’s massive Adjusted Gross Revenue (AGR) dues.
Vi currently owes close to Rs 83,400 crore in AGR payments, with annual obligations of about Rs 18,000 crore beginning March 2025. Its total dues to the government, including penalties and interest, are estimated at nearly Rs 2 trillion—an overwhelming burden threatening the company’s survival.
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With over 198 million subscribers and more than 18,000 employees, Vi has repeatedly warned that without urgent financial intervention, it may not remain viable. Analysts caution that a collapse would reduce India’s telecom market to just two dominant players—Reliance Jio and Bharti Airtel—hurting competition and potentially driving up consumer prices.
While traditional banks remain reluctant to extend new credit, Vi is actively seeking alternative funding sources to sustain capital expenditure and infrastructure needs. However, unresolved issues around AGR dues continue to stall negotiations, a concern echoed by outgoing CEO Akshaya Moondra during the company’s June-quarter earnings call on August 18.
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