The government is considering relief measures for Vodafone Idea to ease its Rs 84,000 crore AGR-related dues, including extending repayment tenure to 20 years and reducing interest rates.
Proposals include charging a token amount annually towards dues and exploring creative relief options to ensure Vi's survival.
Government's aim is to keep Vi operational due to its significant stake and potential financial losses if the company collapses.
Switching to a simple interest structure could save Vi over Rs 16,000 crore and lower annual dues to Rs 6,000–8,500 crore.
Vi's dire financial outlook requires over Rs 20,000 crore annually payment, but the company faces challenges meeting these obligations.
Vi needs clarity on AGR dues to raise Rs 20,000-22,000 crore from lenders and approved plans to raise funds through financial instruments.
Even with reduced annual instalments, Vi may struggle to meet liabilities post-2028-29 due to its current cash flow situation.