In a significant reduction for Indian telecom operators Bharti Airtel and Vodafone Thought (Vi), the central authorities might slash their Adjusted Gross Income (AGR) dues. The Prime Minister’s Workplace (PMO) has reviewed the most recent proposal from the Division of Telecommunications (DoT) on AGR reduction, NDTV Revenue reported on Friday, August 22, 2025, citing sources.
Vodafone Thought’s Dues and Authorities Stake
If authorised, Vodafone Thought’s AGR dues are more likely to be decreased to Rs 28,000 crore from Rs 83,400 crore, in accordance with the report. The federal government had beforehand transformed a part of the corporate’s dues into fairness. Following the conversion of excellent spectrum public sale dues into fairness, the Indian authorities’s stake in Vodafone Thought has risen to just about 49 p.c. The Aditya Birla Group holds a 9.50 p.c stake, and the UK’s Vodafone Group holds 16.07 p.c, taking the whole promoter holding to 25.57 p.c, in accordance with a latest submitting.
In the meantime, Airtel’s AGR dues will seemingly be decreased to Rs 10,000 crore from Rs 42,000 crore, the report mentioned, citing sources.
Shares Bounce on Aid Buzz
Shares of Vodafone Thought jumped on August 22, 2025, after an early morning report revealed at 6 am on Friday urged that the PMO is ready to resolve on a reduction proposal for the telecom main.
The PMO has obtained a proposal from the telecom division to regular Vodafone Thought Ltd, mentioned two officers conscious of the matter, because the provider has repeatedly cited upcoming funds in opposition to pending dues as a menace to its survival, LiveMint reported.
DoT Suggests A number of Aid Choices
In a casual be aware to the PMO final month, the DoT has proposed “a number of reduction choices”, together with an additional two-year pause on paying the statutory dues below moratorium presently, one of many two officers cited within the report mentioned. The PMO will take the ultimate resolution on whether or not any reduction measures have to be prolonged, the particular person added.
Vodafone Thought’s Battle With Debt
Vodafone Thought has been battling dues, owing about Rs 83,400 crore in adjusted gross income (AGR) dues, with annual funds of almost Rs 18,000 crore scheduled from March 2025. Its total dues to the federal government stand at round Rs 2 trillion, together with penalty and curiosity, Mint mentioned.
The operator has repeatedly warned it can not survive with out funding assist, as banks stay reluctant to lend resulting from its monetary stress. Vodafone Thought is exploring non-bank funding avenues for its capital expenditure plans, as negotiations with lenders stay stalled amid uncertainty over AGR dues, outgoing CEO Akshaya Moondra mentioned on August 18 throughout the June quarter earnings name.
