Introduction: The Dues and the Dilemma
As of March 31, 2025, Vodafone Idea (Vi) owes ₹83,500 crore to the Government of India in Adjusted Gross Revenue (AGR) dues. This figure reflects accumulated liabilities resulting from retrospective policy interpretations and prolonged litigation. With the company continuing to bleed financially and market share slipping, the Government is under pressure to offer some form of sustainable relief — without setting a precedent of fiscal irresponsibility.
Recent ET report suggest that the Government is considering shifting from a compound interest model to simple interest for the remaining dues. At first glance, this seems fair: simple interest prevents runaway compounding in case of delayed payments and might ease Vi’s financial stress.
