The moratorium period for the payment of dues on Adjusted Gross Revenue (AGR) and spectrum auctions held before FY21 is set to end on September 25. Previously, on September 15, 2021, the Indian government, through a cabinet decision and press release, provided a four-year payment deferment to the debt-ridden telecom industry. This relief was aimed at easing the financial strain on telecom operators, who were struggling under heavy debt and revenue losses following Reliance Jio’s disruptive entry into the sector.
This note will break down, in simple terms, the financial obligations of Vodafone Idea (VI) as the moratorium period ends, estimating the amount due immediately after its expiration. Additionally, it will explore potential measures the Government of India (GOI) could take to alleviate this financial burden. If such interventions occur, the note will also examine how different scenarios of government shareholding in the company could reshape its structure and future prospects.