The Union Cabinet has approved the rescheduling of Vodafone Idea Limited’s Adjusted Gross Revenue (AGR) dues amounting to Rs 87,695 crore, citing public interest, the need to avoid excessive concentration in the telecom sector, and the interests of nearly 20 crore subscribers, according to government sources.

As per an ANI report, the decision comes in the backdrop of the Supreme Court’s observation that any reconsideration of AGR-related matters falls within the policy domain of the Union Government, provided it is guided by larger public interest. The Cabinet took note of the strategic importance of the telecom sector, describing it as critical national infrastructure that requires long-term financial stability.

Under the approved framework, Vodafone Idea’s AGR dues frozen as of December 31, 2025, will be rescheduled for repayment over a ten-year period, from FY 2031–32 to FY 2040–41. Officials said the move is aimed at providing the operator with financial breathing space while ensuring an orderly recovery of government revenues.

Sources indicated that the Cabinet was particularly mindful of the highly concentrated structure of the telecom industry. It underlined that the continued presence of multiple private players is essential to sustain competition, safeguard consumer choice, and prevent adverse consequences such as steep tariff hikes or deterioration in service quality. In this context, Vodafone Idea’s survival as a viable operator was seen as crucial for the overall health of the sector.

The decision also factors in the interests of around 20 crore Vodafone Idea subscribers across the country. By easing the immediate financial burden on the company, the government aims to ensure uninterrupted telecom services and maintain network continuity, especially in regions where Vodafone Idea continues to have a significant footprint.

In addition, the AGR dues frozen as of December 31, 2025, will be reassessed by the Department of Telecommunications in line with the Deduction Verification Guidelines dated February 3, 2020. This reassessment will be based on audit reports, with the final determination to be made by a government-appointed committee. Officials said the committee’s decision will be binding on both the government and the company.

Government sources added that the Cabinet’s move also protects the Centre’s 49 per cent equity stake in Vodafone Idea, striking a balance between fiscal prudence and broader public and consumer interest.