Stock Gains in Early Trade
Shares of Vodafone Idea (Vi), the financially stressed telecom operator, saw a notable uptick in early trading on Monday, December 15. The stock rose by as much as 3.3%, reaching ₹12.03 on the NSE.
Government Considers Interest-Free Moratorium
The positive market movement follows reports that the government may extend an interest-free moratorium of four to five years to Vodafone Idea on over ₹83,000 crore of pending statutory dues linked to adjusted gross revenue (AGR). This move could provide immediate financial relief to the cash-strapped telecom firm.
After the moratorium period, the dues are expected to be payable in six installments, with a likely reduction of nearly half following a reassessment of liabilities, according to the news report by The Economic Times.
Understanding Moratorium
A moratorium is essentially a temporary suspension of obligations, usually granted by an authority such as the government, court, or lender. In financial terms, it provides a grace period during which payments are paused without being considered a default, offering companies critical breathing room.
Government Review and Legal Boundaries
Earlier in December, Union Telecom Minister Jyotiraditya Scindia stated that the Department of Telecommunications (DoT) is awaiting a formal request from Vodafone Idea. He emphasized that the ministry is reviewing legal boundaries set by the Supreme Court to ensure any relief stays within judicial limits.
Scindia indicated that the government may complete its assessment and release recommendations within a few weeks, potentially announcing the relief package by year-end.
Vodafone Idea: Key Updates on AGR Dues
In November 2025, the Supreme Court granted Vodafone Idea a significant reprieve by allowing the Centre to reconsider and reconcile the company’s pending AGR dues. The court clarified that the review is not restricted to the 2016–17 financial year, expanding the scope of potential relief.
Clarification on Previous Orders
On October 27, the Supreme Court bench noted that Vodafone Idea’s petition was limited to additional AGR dues up to FY 2016–17. However, the company’s counsel argued that the request included both additional AGR dues and reassessment of all dues.
The court confirmed that Vodafone Idea seeks relief on both fronts. Currently, the additional AGR dues amount to ₹9,450 crore, while total AGR liabilities exceed ₹83,500 crore as of March 2025. This clarification opens the door for the Centre to provide comprehensive relief against all AGR-related dues.
Earlier, the Supreme Court had permitted the Centre to reconsider ₹5,606 crore in pending AGR dues for the 2016–17 period, setting a precedent for the broader reassessment now underway.
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