The Union government is set to recover more than ₹1.77 lakh crore in outstanding Adjusted Gross Revenue (AGR) dues from telecom operators up to the end of FY 2024–25, according to official data tabled in Parliament. The figures underscore the persistent financial strain gripping the sector, with debt-laden Vodafone Idea accounting for the single largest share at ₹89,952 crore.
The data shows that Bharti Airtel carries AGR dues of ₹51,091 crore, while telecom entities linked to the Tata Group owe ₹20,426 crore. State-run MTNL has liabilities of ₹14,462 crore, and Reliance Jio Infocomm has AGR dues amounting to ₹1,984 crore.
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Background to the AGR dispute
The AGR issue has weighed heavily on India’s telecom industry for years. Following Supreme Court rulings, operators were required to include non-core income while computing AGR for licence fees and spectrum usage charges. This interpretation sharply escalated liabilities, pushing several companies into financial distress.
In response, the government introduced relief measures, including moratoriums and staggered payment schedules, to prevent a systemic collapse of the sector. Despite these interventions, the cumulative dues remain substantial, reflecting both legacy liabilities and the slow pace of balance-sheet repair.
Vodafone Idea under maximum stress
Of all operators, Vodafone Idea remains the most vulnerable. A significant portion of its AGR liability relates to the period between FY 2006–07 and FY 2018–19. These dues have been kept “frozen” for now, but are subject to reassessment, a process that could have far-reaching implications for the company’s survival.
Industry observers note that Vodafone Idea’s ability to sustain operations hinges on regulatory relief, capital infusion and clarity on the final AGR payable after reassessment.
Review panel set up
The government informed Parliament that the Department of Telecommunications constituted a special committee on January 30 to decide the outcome of the reassessment of Vodafone Idea’s frozen AGR dues.
The committee comprises a retired Secretary-level officer of the Government of India and a representative nominated by the Comptroller and Auditor General of India. It has been mandated to complete the reassessment within two months, unless the timeline is formally extended.
According to the official statement, the panel’s decision will be final and binding on both the Department of Telecommunications and Vodafone Idea, adding to the significance of the review process.
Wider impact on the sector
Experts caution that the AGR burden extends beyond corporate balance sheets. High statutory dues constrain capital expenditure, affect 5G roll-outs, slow network upgrades and limit investments in service quality. Over time, this could dilute competition and impact consumers through slower innovation and higher tariffs.
While operators such as Reliance Jio and Bharti Airtel are better placed due to stronger cash flows and balance sheets, Vodafone Idea continues to face an uphill battle, with AGR liabilities compounding its funding challenges.
The road ahead
The committee’s findings will be closely watched across the industry. Any relief or downward revision in frozen dues could offer Vodafone Idea critical breathing space. Conversely, an adverse outcome could intensify pressure on the company’s restructuring plans and long-term viability.
For the government, the challenge lies in balancing revenue recovery with the need to ensure a stable, competitive telecom ecosystem. The ₹1.77 lakh crore AGR figure is a stark reminder that the resolution of legacy disputes remains central to the future of India’s telecom sector.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
