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Vodafone Idea is seeking a long-term resolution on AGR dues and is in talks with lenders for fresh funding
Vodafone Idea
Vodafone Idea Ltd is seeking a long-term resolution from the government on its Adjusted Gross Revenue (AGR) dues and is in active discussions with lenders to secure fresh funding, Chief Executive Officer Abhijit Kishore said during the company’s Q2 earnings call on Tuesday.
Kishore said the telecom operator has welcomed the Supreme Court’s recent order permitting the government to reconcile all AGR dues up to FY2016-17, expressing optimism for a “sustainable outcome.”
“The government has been very supportive. We are engaged with the Department of Telecommunications on the next steps following the Supreme Court order,” he said. “We are also in talks with several banks and NBFCs for funding. With the government holding a 49% stake, we are collectively looking for a solution that is sustainable and long term.”
According to the CEO, Vodafone Idea’s total AGR dues currently stand at Rs 78,500 crore. The Supreme Court’s latest ruling, delivered on October 27 and November 3, allows the government to comprehensively reassess and reconcile all dues, including interest and penalties, up to FY17 — a move seen as a major relief for the financially stressed operator.
In September, Vodafone Idea had sought a waiver of penalty and interest on an AGR demand of Rs 9,450 crore raised by the Department of Telecommunications, arguing that much of it pertained to the pre-FY17 period already settled by the apex court in 2020. Of this, Rs 2,774 crore relates to post-merger liabilities of Vodafone Idea, while Rs 5,675 crore pertains to pre-merger dues of the Vodafone Group.
The government became Vodafone Idea’s largest shareholder in March this year after converting dues worth Rs 36,950 crore into equity, taking its stake to about 49%. In 2023, the Centre had also acquired a 33% stake by converting statutory dues of over Rs 16,000 crore.
Funding and Network Expansion
On the funding front, Kishore said the company continues to work closely with banks and NBFCs to secure long-term financing. “Some banks may be waiting for the government’s decision following the Supreme Court order, but discussions are active and constructive,” he added.
Outlining operational priorities, Kishore said Vodafone Idea is focused on expanding its 4G and 5G coverage and improving customer experience. The telco’s 4G population coverage has increased to 84%, up from 77% in March 2024, and it aims to reach 90% in the coming quarters.
“We are continuing to invest in expanding 4G and 5G networks. Our investments are driving better engagement, and we expect subscriber trends to turn positive as we extend coverage and improve service quality,” he said.
Vodafone Idea has rolled out 5G services across 29 cities in 17 circles, which together account for 99% of its revenue. The rollout, currently based on Non-Standalone (NSA) architecture, is designed to scale to Standalone (SA) when needed.
Kishore added that recent investments have led to a 38% increase in 4G data capacity and a 17% improvement in speeds since March 2024.
On tariffs, he reiterated the industry’s need for price correction but said timing would depend on market dynamics. “There is certainly a need for tariff hikes, but how and when that happens will depend on how the industry evolves,” he said.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
November 12, 2025, 07:35 IST
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