Vodafone Idea May Get Relief! Government Can Provide One More Survival Opportunity to VI for the Sake of People Welfare

Vodafone Idea (VI) may get relief from the government in the form of reduction or moratorium of Adjusted Gross Revenue (AGR) or support for fresh funding so that company can survive and grow. This will help to avoid Duopoly market in telecom which will ultimately benefit to people.

Why Supreme Court Rejected Request of VI Earlier?

On May 19, 2025 the Supreme Court rejected fresh pleas by Vodafone Idea and other telecom companies, who were asking relief on pending AGR dues, terming the petitions “misconceived”. It is said by court that the issue lies within the executive’s domain and the judiciary would not intervene.Vodafone Idea claimed that it had paid more than Rs 50,000 crore to government and government holds almost 50% shares of the company due to conversion of debt into equity. The court said that although the government is open to support the firm but it cannot be forced by the judiciary.

How can VI Get Relief from Government?

The government is considering options to support Vodafone Idea, which is passing through severe financial stress. Supreme Court also rejected its plea regarding the payment of AGR dues. As per report, government needs to maintain healthy competition in the telecom sector which requires the survival of VI. Government does not want duopoly condition in the market and hence will try to support VI one way or other. The government has not confirmed anything regarding this so far but is considering two to three options to provide relief to the company. Major options are providing moratorium on AGR dues which means delay in payment and asking banks to provide fresh credit to the company. Due to high risk, banks are not ready for fresh funding. For this, the government may offer various incentives to lender banks.

How Relief to VI can Benefit Public?

At current, government stake in Vodafone Idea is 49%. It means survival and growth of VI will also benefit government. Hence government will treat VI differently from other telecom companies Airtel and Jio. Even after severe financial difficulties, Vodafone Idea has expectation of improved financial performance and operational efficiency in upcoming years. More companies mean more competition which ultimately benefits people in the form of enhanced service and reduced prices. Hence, government is considering providing relief to the company

As VI is struggling to survive due to high load of liabilities, government is considering reviving it by providing moratorium on AGR dues or through fresh funding from banks or other suitable measures. VI’s survival is necessary for the benefit of government as well as public.