Vodafone Warns They Might Shutdown After 2026 Without Govt Help

Vodafone Warns They Might Shutdown After 2026 Without Govt Help Tezzbuzz | 2025-05-17 22:24:39

Vodafone Idea Limited (Vi) has issued a dire warning to the Department of Telecommunications (DoT)—it may be forced to cease operations beyond FY26 unless the government steps in to provide relief on its Adjusted Gross Revenue (AGR) dues. In a letter dated April 17, 2025, Vi CEO Akshaya Moondra told the Telecom Secretary that without government support, the company’s ongoing funding discussions with banks would collapse.

Key Demands from Vi:

A waiver of ₹30,000 crore in AGR dues
A restructured payment plan over 20 years
A five-year moratorium on payments till FY30
Relief in spectrum- payments

Proposed Payment Terms:
Vi suggested that the government consider only the principal AGR demand till FY19 (₹17,213 crore) as final, waive off interest and penalties, and accept the remaining ₹7,852 crore over two decades—interest-free—with payments beginning FY31.

Consequences Without Support
Vi warned that without timely government intervention:

Operations will haltstalling all capital expenditure
Over 200 million users could lose service and be forced to port out
Around 30,000 jobs would be at risk
Investments made over the last year—including the government’s 49% equity stake—would become worthless
The company could land in insolvency proceedings under NCLT

Impact on the Indian Telecom Landscape
The company emphasized that India’s telecom sector could be reduced to a duopolyaffecting consumer choice, competition, and the viability of future spectrum auctionsa major government revenue source.

Vi cited the government’s longstanding support for a three-player market and reminded them of the broader economic and public interest consequences.

Supreme Court Hearing on May 19
The Supreme Court has agreed to hear a fresh petition from Vi on May 19seeking a waiver on AGR dues.

Senior advocate Mukul Rohatgi is representing the company before a bench led by Chief Justice B R Gavai.

Final Thoughts
Vodafone Idea’s survival now hinges on urgent policy intervention. With high stakes for customers, employees, shareholders, and the government itself, the decision over AGR dues could determine whether India maintains a competitive telecom landscape—or slides into a costly duopoly.

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