No additional aid will be extended to Vodafone Idea's (Vi) AGR liabilities as a relief measure to their outstanding dues. The Minister of State for Communications, Chandra Sekhar Pemmasani, in his statement dated August 25, 2025, reaffirmed that no such aid would be extended to the financially distressed telecom company.
According to him, the issue is critical and should be resolved collectively by the Union Cabinet, PMO, the Finance Ministry, and the Telecom Minister Jyotiraditya Scindia.
Currently, there are no plans or talks of changing the current arrangements. Pemmasani pointed out that the government has already redeemed a large chunk of Vi's debt in terms of equity, and now it is the largest shareholder with 49% holding.
Vi is currently saddled with AGR dues of about ₹83,400 crore, with Rs. 18,000 crore annual payments scheduled to resume from March 2026. Though the government has intervened in the past in the form of debt-for-equity swaps, the company remains under severe liquidity stress.
It is learnt that the DoT had put up a number of relief measures before the PMO, including extending the moratorium period on AGR payments, lowering the annual instalment, and exempting the payment of penalties and interest.
But Pemmasani said the government has not been informed of these proposals from the PMO. Consistent with the government's view, shares of Vi fell sharply, losing almost 10% on August 26, 2025. Earlier speculation around a possible bailout made investors look hopeful, but the most recent update is detrimental to market sentiments.
As part of an attempt to resolve its financial issues, Vi is in the advanced stages of securing Rs. 5,000 crore in debt funding through its infrastructure arm, Vodafone Idea Telecom Infrastructure Limited. This funding will be utilized for network expansion and strategic 5G rollouts, aimed at shoring up investor confidence and operational strength amid continued financial strain.
As things evolve, all parties with an interest in the matter are keenly watching the Vi’s efforts to meet its financial obligations and continue operations, and the government’s position towards the matter.