AGR Waiver: A Boost for India’s Telecom Industry

The Indian government is working on a proposal to waive a significant portion of Adjusted Gross Revenue (AGR) dues, offering critical financial relief to struggling telecom operators. This step could mark a turning point for the sector, which has been reeling under financial stress since the Supreme Court’s 2019 verdict on AGR liabilities. 

The proposed framework by the Indian government reportedly includes waiving 50% of interest and 100% of penalties and interest on penalties, potentially reducing dues by over ₹1 lakh crore. Vodafone Idea (Vi), the most financially distressed operator, could see its liabilities cut by ₹52,000 crore, while Bharti Airtel’s dues may drop by ₹38,000 crore. Tata Teleservices could benefit with a reduction of ₹14,000 crore.

The AGR dues, originally pegged at ₹1.47 lakh crore, arose from the Supreme Court’s ruling that included non-telecom revenues in the calculation of AGR. Of the total dues, 75% comprised interest, penalties, and interest on penalties—elements now targeted for reduction.

The Department of Telecommunications (DoT) has held discussions with telecom operators, particularly Vodafone Idea, which has flagged its inability to meet obligations without intervention. Vi’s AGR dues are estimated at ₹80,000–85,000 crore as of March 2025. In December 2024, the government eased Vi’s financial burden by waiving the need for bank guarantees for spectrum dues, freeing up ₹24,800 crore.

If approved, this proposal could stabilize the telecom sector, ensure competition, and support the government’s vision of a connected India. Experts believe the move is vital for preserving the sector’s viability, as repayments for AGR dues are set to begin in FY26. By reducing liabilities, the government hopes to provide a level playing field and foster long-term growth in India’s digital economy.  

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#AGRWaiver: A Game-Changer for India’s Telecom Industry | What It Means for Vodafone, Airtel & Vi