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News Topical, Digital Desk : On the last day of the year, the central government gave a big relief to Vodafone Idea (Vodafone Idea AGR relief) by approving a relief package on its AGR dues (Adjusted Gross Revenue). This decision is considered important for Vodafone Idea because the company has been battling heavy debt and cash crunch for a long time. However, the surprising thing is that as soon as this news came, Vodafone Idea shares (Vodafone Idea Share Price) fell drastically and it fell by about 18 percent and closed with a decline of 12 percent. However, it is expected that the shares may rise on the New Year i.e. on January 1.
According to media reports, the Union Cabinet approved a relief package related to AGR (Adjusted Gross Revenue) on December 31st. Under this, a five-year moratorium has been granted on the company's AGR dues. Furthermore, the Cabinet has also decided to freeze the company's existing outstanding debt.
AGR dues of Rs 83,400 crore
Vodafone Idea currently has AGR dues of approximately ₹83,400 crore. Starting March 2025, the company was required to pay approximately ₹18,000 crore annually. The company has repeatedly stated that without funding support, its business would be difficult to sustain. Banks are also hesitant to lend money due to the company's weak financial position.
Vodafone-Idea has 18,000 employees
Vodafone-Idea currently has around 18,000 employees and a subscriber base of approximately 198 million. A few weeks ago, the Supreme Court allowed the government to reassess and reconcile all of the company's dues (including interest and penalties) up to FY17. This was considered a major relief for the company.
The government became the company's largest shareholder in March.
In September, Vodafone Idea sought waiver of interest and penalties on the ₹9,450 crore AGR demand raised by the Department of Telecommunications. The government has already become the company's largest shareholder by converting ₹36,950 crore of its outstanding dues into equity in March 2025, increasing its stake to about 49%.
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