Vodafone Idea Shares Surge 6% on Talk of Rs 84,000-Crore AGR Dues Relief

Shares of Vodafone Idea (Vi) rallied approximately 6%, rising to around ₹6.96 on the NSE on June 24, 2025, after reports surfaced that the Indian government, Vi’s largest shareholder (~49%), is contemplating relief measures for its Rs 84,000 crore AGR dues.

According to reports, officials are reviewing several key proposals:

• Extending repayment tenures from the current 6 years to up to 20 years.
• Switching to simple interest (8–10%) instead of compound interest (~30%) to ease cumulative liability.
• Token annual payments of ₹1,000–1,500 crore until a final resolution is secured.

These relief strategies are being considered to prevent Vi’s potential insolvency—its cash reserves (~₹9,930 crore as of March-end) fall far short of the Rs 18,064 crore annual instalment due from FY 2026 to FY 2031.

Market analysts note that converting to simple interest with longer repayment could slash Vi’s annual burden by Rs 3,000 crore and potentially save over Rs 16,000 crore overall. However, some observers caution that even reduced instalments may strain Vi’s already limited cash flows.

This relief push follows the Supreme Court’s rejection of Vi’s plea to waive interest and penalties—though the court did say the government is free to intervene

A government decision could not only prevent a telecom market shake-up but also protect taxpayer equity.

Vi’s survival: Continued operations and maintenance of competition in India’s telecom space hinge on relief.

Fiscal exposure: As part-owner, the Centre risks losses if Vi collapses, but relief could also amplify fiscal costs and set a precedent for other bailouts.

Investor sentiment: A political decision to ease AGR burdens may attract telecom sector investment and aid Vi's Rs 20,000–25,000 crore planned fundraising.