Vodafone Idea has received a major relief from the government after its long-pending AGR dues were reduced significantly.
The Department of Telecommunications has cut the company’s dues to ₹64,046 crore from around ₹87,695 crore earlier. This reduction of ₹23,649 crore, about 27%, comes as a big boost for the financially stressed telecom operator.
AGR dues have been a major burden for Vodafone Idea, which has been struggling with heavy debt and intense competition in the telecom sector. The latest move is expected to ease some of the pressure on its finances and improve its ability to raise funds.
The revision follows a fresh review of the dues after directions from the Supreme Court, which had asked authorities to look into the company’s concerns over how the amount was calculated.
Along with the reduction, the government has also allowed a structured repayment plan. The company will start repaying the dues at a later stage, beginning with smaller annual payments, and then clear the remaining amount over several years.
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