Minister of State for Communications Pemmasani Chandra Sekhar told private sources on August 25 that the government has already extended significant support—such as converting part of Vi’s debt into equity—and currently has no plans for further relief. He said any new decisions on AGR dues would need approval from the Union Cabinet, involving the PMO, Finance Ministry, Telecom Minister, and the Department of Telecommunications.
This comes after reports last week suggested that the DoT had proposed multiple relief measures, including a two-year moratorium on AGR payments, smaller instalments, and waivers on penalties and interest. However, the minister denied knowledge of such a proposal being sent to the PMO.
So far in 2025, Vodafone Idea shares are down more than 15%, while Indus Towers has remained flat year-to-date.
Vodafone Idea has been seeking clarity from the government on AGR dues as it negotiates funding with banks. The company had earlier requested that the Rs 17,213 crore (principal up to FY19) be treated as final, with complete waiver of penalties and interest.
CEO Akshaya Moondra recently told analysts that Vi’s immediate priority is to invest in business operations rather than focus on government shareholding. He also noted that while the government has supported the telecom sector in the past (2019 spectrum deferment, 2021 reform package, and debt-to-equity conversions in 2023 and 2025), Vi has asked that the AGR issue be resolved before the March deadline to help banks move forward with funding decisions.
