Vodafone Idea Ltd (Vi) has informed the Supreme Court that it may not be able to sustain operations beyond FY 2025-26 without fresh bank funding—a prospect that remains bleak due to its unresolved Adjusted Gross Revenue (AGR) dues. The telco recently approached the Supreme Court seeking a stay on the government’s demand for interest and penalties on its AGR dues, as the moratorium on payments ends in September, according to multiple reports.
Banks Reluctant to Lend Amid AGR Uncertainty
Vodafone Idea has pleaded with the Supreme Court for a waiver on massive government dues, citing its inability to secure loans from banks. On Monday, the struggling telecom operator stated in its court petition that it cannot continue operations beyond FY 2025-26 without access to bank funding. Lenders remain wary of extending credit due to Vi’s hefty dues linked to AGR. This revelation comes just two months after receiving a second lifeline, once again raising concerns about its survival.
“It is humbly submitted that without bank funding, the Petitioner company (Vodafone Idea) will not be able to operate beyond FY 2025-26, as it does not have the ability to pay the AGR instalment of ₹18,000 crore as per Department of Telecommunications (DoT) demands due in March 2026,” Vodafone Idea stated in its petition to the Supreme Court on May 13, as reported.
Vodafone Idea Seeks ₹30,000 Crore Waiver
The telecom operator has requested a waiver of over ₹30,000 crore in penalties and interest, urging the court for an urgent hearing scheduled for May 19. Vodafone Idea argues that without additional government support, the entire telecom sector is at risk of collapse.
Bharti Airtel Considers AGR Dues Equity Conversion
Amid Vodafone Idea’s financial struggles, Bharti Airtel is exploring ways to maintain competitiveness in the sector. According to sources, Airtel is considering the possibility of converting its own AGR dues into government equity, mirroring the strategy previously adopted by Vodafone Idea.
