Vodafone Idea Seeks Urgent Government Bailout to Avert Shutdown
Vodafone Idea requests urgent government support to address Adjusted Gross Revenue (AGR) dues to remain operational beyond FY26. The telco warns the government that without timely intervention, it faces a financial crisis, risking job losses, service disruption, and reduced investor confidence, ultimately impacting 200 million customers.
- Country:
- India
In a critical plea to the government, telecom operator Vodafone Idea has indicated that without immediate intervention to alleviate its Adjusted Gross Revenue (AGR) dues, it won't survive past fiscal year 2026. The company, heavily burdened by debt, cited constraints in bank funding discussions as a major obstacle to continued operations.
In an April 2025 letter to the Telecom Department, CEO Akshaya Moondra emphasized that the absence of support would culminate in a 'point of no return'. Faced with a Supreme Court case seeking relief from Rs 30,000 crore in AGR dues, Vodafone Idea highlighted the potential loss of services for over 200 million users and employment for 30,000 individuals if support is not granted.
The firm argues that the government's investment in Vodafone Idea would diminish significantly, leading to a duopoly in the telecom sector, adversely affecting market competition and impacting spectrum auction revenues. The telco is urging a waiver of interest and penalties on AGR dues and an extension on spectrum payments as part of a survival strategy.
(With inputs from agencies.)
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