‘Won’t be able to work beyond FY26’: Vodafone Idea’s insolvency warnings AGR bews without government support

Telecom operator Vodafone Idea Limited (Short VIL, commonly called VI) informed the Department of Telecommunications (DOT) that it would not be able to continue operations from FY 26 without government support on the adjusted gross revenue (AGR) dues. The company said that the ongoing discussion with banks for funding would stop due to lack of assistance on time. In a letter on 17 April 2025, VI CEO Akshay Mondra on Friday wrote to the Telecom Secretary, emphasizing the urgency of intervention to the Secretary. He said, “Timely support on AGR without GOI’s (Government of India) will not be able to work beyond Vil FY26 as the bank funding discussion will not proceed,” saying that “no support will give any return.” Meanwhile, the Supreme Court has agreed to hear a new petition from Vodafone Idea, demanding a discount of about Rs 30,000 crore in Agri dues. Senior Advocate Mukul Rohtgi, who represented the company, requested an immediate hearing before a back, including Chief Justice Bry and Justice Augustine George Maasih. The hearing is scheduled for May 19.In his communication in the dot, Will warned that without disbursement of bank loan, its planned investment would not be physical. The company said that the improvement in operations would stop and the funds raised in the last one year will be abolished, effectively bringing the capital expenditure cycle into a stay. It said, “In such a case, the entire fund raised in the last 12 months and the investment made by the company so far, as well as the government’s equity stake, will lose value, including recent conversion.,The telecom company in the absence of support, and inability to fulfill the AGR obligations, it can face insolvency proceedings under the National Company Law Tribunal (NCLT), possibly disrupt services and lead to devaluation of its network and spectrum assets. The company estimated that about 200 million customers would be forced to port if the services were interrupted.It emphasized that timely support from the government would protect public interest and benefit the Indian economy significantly.The company stated that such support would ensure continuous service for approximately 200 million users, will protect employment for approximately 30,000 individuals, and protect the investment of over 6 million shareholders. Noted that the government stood to face sufficient losses when the government, as the largest stakeholder with 49 percent equity holding, marginalized or closed operations. This said, “... Plus Goi share value will be reduced to NIL, if no support is provided. , Vodafone Idea also reminded the government of its declared policy to maintain three-players private telecom markets. “The government has always ensured that it supports a 3 private player market. If the telecom area decreases in a duality, it will not only be a bad result for competition and consumer choice, but will also create a continuous source of revenue for the future spectrum auction, a continuous source of revenue, also a non-starter, “the company said.As part of its relief proposal, VI urged the government to consider the major demand according to the dot by FY 2019, with Rs 17,213 crore, as final, and to provide full discounts on interest and punishment. The company said that, after accounting for payment made in 2020 and the AGR dues were converted into equity in 2023, the balance AGR outstanding will be Rs 7,852 crore by March 2025. This proposed that this amount should be paid in a period of 20 years, which has no other interest.It requested five additional years by FY30, followed by 11 equal annual installments of Rs 714 crore between FY31 and FY41. Additionally, support support in spectrum related payment. VI sought a year expansion of one year of spectrum payment period for spectrum received before the 2021 auction and one year for five years on spectrum installment payment from FY28 to FY32.