New Delhi: Vodafone Idea Limited (Vi) has submitted a proposal to the Indian government, seeking a recalculation of its Adjusted Gross Revenue (AGR) dues. The telecom operator aims to remove arithmetical errors and duplications in the calculation. Vi also requested a one-time waiver of penalties and interest on penalties, which could reduce its total liability by an estimated ₹45,000 to ₹50,000 crore. This ^[1][2]move follows a recent Supreme Court clarification allowing the government to review and re-evaluate the company's pending AGR liabilities. ### ^{[3][4][5][6][7]}Understanding the AGR Challenge Adjusted Gross Revenue (AGR) represents the usage and licensing fees that telecom operators must pay to the Department of Telecommunications (DoT). The d^[8]ispute over AGR began years ago, centering on what revenues should be included in its calculation. DoT m^{[9][10][8][11]}aintained that AGR should include all revenues, even from non-telecom sources like interest income and asset sales. Telec^[8]om companies, however, argued that only revenue from core telecom services should count. In O^[8]ctober 2019, the Supreme Court upheld DoT's broader definition, significantly increasing the financial liabilities for telecom operators like Vodafone Idea. This ^[12][8][6]ruling forced companies to pay outstanding dues based on the wider definition. Later, as part of the 2021 Telecom Relief Package, the government changed the definition of AGR to exclude non-telecom revenue for future calculations, providing some prospective relief. ### ^[12]Vodafone Idea's Mounting Financial Strain Vodafone Idea faces immense financial pressure, with total AGR liabilities standing at over ₹83,500 crore as of March 2025. Its ove^{[1][13][14][15][6]}rall debt, including spectrum dues, is around ₹2.02 lakh crore, and the company reported a negative net worth of ₹82,460 crore as of September 2025. The burden ^[16][17]of these dues severely impacts Vi's ability to invest in network upgrades, including the crucial rollout of 5G services. The compan^[1][18]y has been steadily losing subscribers, with its mobile user base dipping to 20.07 crore in October 2025. Vi has warn^[3][14]ed that it might not be able to continue operations beyond the financial year 2026 without immediate financial support and relief on its AGR liabilities. This dire s^[14][15][6]ituation underscores the critical importance of the current proposal to the government. ### Government and Supreme Court Intervention The Supreme Court provided a crucial clarification in October and November 2025. It stated that the government is free to reconsider and recalculate all of Vodafone Idea's Adjusted Gross Revenue dues, including interest and penalties. This clarif^{[3][4][5][6][7]}ication resolved earlier ambiguities about whether relief applied only to specific additional dues or to the entire outstanding amount. Previously^[4][5][7], in May 2025, the Supreme Court had dismissed petitions from telecom operators, including Vi, seeking a waiver on interest and penalties. However, th^[19][6]e more recent clarification opens the door for government intervention. The Indian government already holds a 48.99% equity stake in Vodafone Idea, having converted tens of thousands of crores of interest dues into equity. Union Telec^{[12][19][15][6]}om Minister Jyotiraditya Scindia recently indicated that the government is evaluating legal options and could announce recommendations for relief by year-end, following Vi's formal request. High-level ^[4][5]meetings involving officials from the Finance Ministry and DoT were scheduled in December 2025 to discuss Vi's AGR dues. ### The Pa^[20][21]th Ahead for Vodafone Idea Vodafone Idea's proposal specifically seeks the removal of arithmetical errors and duplication from its AGR calculation. It also req^[1][2]uests a one-time waiver of penalties and interest on penalties, which could significantly reduce its payable amount. Such a redu^[1][2]ction of ₹45,000 to ₹50,000 crore is vital for the company. This potential^[1][2] relief is seen as crucial for Vodafone Idea to secure its planned ₹25,000 crore fundraising efforts. It would also all^[1][2]ow the company to invest in modernizing its network and rolling out 5G services, enabling it to compete more effectively in the Indian telecom market. The government's ^[1][2][18]decision on this proposal will be critical for Vodafone Idea's long-term sustainability and the competitive balance of the country's telecom sector.

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