The government is unlikely to offer Vodafone Idea (Vi) further financial relief or an extension on its adjusted gross revenue (AGR) dues from FY26 onwards, according to senior officials in the Department of Telecommunications.
Officials have stated that there is limited scope for additional leeway, such as a relaxed payment schedule, for Vi, as it is becoming increasingly difficult to provide further financial assistance.
The government is not willing to convert more dues into equity or reduce the Rs 84,000 crore AGR amount owed by Vodafone Idea, signaling a shift from earlier relief measures that allowed the conversion of dues into equity to ease the company's financial stress.
Vi, facing significant debt and losses, would need a policy-level change for any further extension in payment terms, which would ensure that such options are available to all telecom operators in similar situations.