Vodafone Idea is ending 2025 with a survival kit, but the market isn’t exactly celebrating. As of Wednesday, December 31, 2025, the Union Cabinet has officially frozen ₹87,695 crore of the company’s Adjusted Gross Revenue (AGR) dues.
The thing is, this is a “pause” button, not a “delete” button. Or nothing. Let’s be real, investors were hoping for a massive waiver or a “haircut” on the interest, but instead, the government just pushed the bill further down the road. Those too.
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The “New Deal” Breakdown: Field Notes
The government is basically giving the telco a decade-long breathing room to fix its business.
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The Big Freeze: Dues totaling ₹87,695 crore (as of today) are frozen. No immediate payment is required.
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The Repayment Window: The money will be paid back over 10 years, starting in FY32 and ending in FY41.
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The “No-Go” Zone: Dues for FY18 and FY19 are not part of this deal. Those are already settled by a 2020 Supreme Court order and must be paid between FY26 and FY31.
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The Reassessment: The Department of Telecommunications (DoT) will audit the frozen amount later. This could potentially lower the final bill if they find errors in previous calculations.
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Market Meltdown: Why the 11% Crash?
And here’s the kicker: Vodafone Idea (Vi) shares were actually up 6% this morning on “rumors” of a bailout. But once the details leaked at 2:30 PM, the stock went into a tailspin, hitting a low of ₹10.26.
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No Waiver: The market expected at least a 50% waiver on penalties. When it realized the total debt stays on the balance sheet, investors bailed.
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Long-Term Burden: Analysts are saying that while this ensures Vi survives, it doesn’t necessarily make it profitable for shareholders anytime soon.
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The Govt Stake: The government now owns nearly 49% of the company. It basically stepped in to protect its own investment and prevent a duopoly (Jio vs. Airtel).
It’s an ongoing situation where the “Digital India” mission simply cannot afford to let a 20-crore subscriber base collapse. But for the company, it’s like being given a life jacket while still being lost at sea.
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