In a significant move for the cash-strapped telecom companies Vodafone Idea and Bharti Airtel, the Indian government is reportedly considering a proposal to waive a portion of their Adjusted Gross Revenue (AGR) dues. If implemented, this measure could counter the prevailing duopoly of Mukesh Ambani’s Reliance Jio and Sunil Bharti Mittal-led Airtel.
AGR, or Adjusted Gross Revenue, became a critical issue for telecom operators after the Supreme Court’s 2019 ruling, which imposed hefty dues on companies like Vodafone Idea and Bharti Airtel. Recent reports suggest that the Modi government may waive 50% of interest and 100% of penalties and interest on penalties for these dues.
Background on AGR Dues
In October 2019, the Supreme Court upheld the government’s definition of AGR, leading to dues totaling ₹1.47 lakh crore, comprising ₹92,642 crore in license fees and ₹55,054 crore in spectrum usage charges (SUC). Of this, nearly 75% was attributed to interest, penalties, and interest on penalties.
If the proposed waiver is announced, it could bring telecom companies over ₹1 lakh crore in monetary relief, as per report. Vodafone Idea, burdened by significant debt, stands to benefit the most, potentially reducing its dues by over ₹52,000 crore. For Bharti Airtel, the dues could decrease by nearly ₹38,000 crore, while Tata Teleservices may see a reduction of around ₹14,000 crore. Reliance Jio has no legacy AGR dues.
Government Discussions and Timeline
Sources indicate that the proposal is being deliberated at the highest levels, including the finance ministry, the telecom department, and the cabinet secretariat. The government aims to announce the measure in the Union Budget 2025–26. If approved, this would mark the second major relief package for the debt-laden telecom sector, following a similar initiative in September 2021.
Recent Relief Measures
In December 2024, the government eased financial pressure on telcos by eliminating the need for bank guarantees for past spectrum dues. This decision saved Vodafone Idea ₹24,800 crore in guarantees.
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Current Estimates of AGR Dues
As per industry estimates, the AGR dues as of March 2025 could amount to ₹80,000–85,000 crore for Vodafone Idea, ₹42,000–44,000 crore for Bharti Airtel, and ₹17,000–19,000 crore for Tata Teleservices.
This proposed waiver, if enacted, could provide crucial financial relief to these companies, particularly Vodafone Idea, and help stabilize India’s telecom sector.
