**Executive Summary:**
This document outlines the Indian government's response to questions regarding its equity shares in Vodafone Idea Limited (VIL) and pending Adjusted Gross Revenue (AGR) dues from telecom companies. It details the government's acquisition of equity in VIL through the conversion of interest and spectrum auction dues, a measure taken as part of the 2021 telecom reforms. The document also provides an overview of pending AGR dues from major telecom companies as of March 31, 2025, and the status of their payment.
**Key Points / Main Content:**
* **Government Equity in Vodafone Idea Limited (VIL):**
* The government holds 49% of the equity shares in VIL.
* 1,613.31 crore shares were issued to the government in February 2023, converting interest for the moratorium period amounting to ₹16,133.1 Crores into equity.
* 3,695 crore equity shares were issued to the government in April 2025, converting outstanding spectrum auction dues amounting to ₹36,950 Crore into equity.
* **Adjusted Gross Revenue (AGR) Dues:**
* No payment obligation termed as AGE dues exists under the license agreement.
* License Fee (LF) and Spectrum Usage Charges (SUC) are payable by licensees based on their Adjusted Gross Revenue (AGR).
* Annexure I provides details of pending AGR dues, including interest, of major telecom companies as of March 31, 2025.
* Pending dues beyond FY 2019-20 for Vodafone Idea Limited are under dispute litigation.
* AGR dues for BSNL are to be settled through equity conversion up to FY 2026-27, as per Cabinet Decision.
* AGR dues for MTNL are to be examined by Committee of Secretaries for further action, as per Union Cabinet Decision in July 2022.
* **Government's Telecom Sector Reforms:**
* In September 2021, the government introduced structural and procedural reforms to promote competition, protect consumers, infuse liquidity, encourage investment, and reduce regulatory burden.
* Reforms included a moratorium of up to four years on annual payments of dues arising from the AGR judgment and spectrum purchased in auctions before 2021.
* TSPs were given the option to pay interest arising from the deferment of payment by way of equity.
* The government has the option to convert outstanding post-moratorium installments into equity based on the prevailing situation.
**Impact Analysis**
**Telecom Service Providers (TSPs):**
* **Impact:** TSPs are affected by the government's reforms aimed at easing financial stress, potentially improving their financial stability and reducing regulatory burdens. The conversion of dues into equity impacts their ownership structure. Pending AGR dues, moratoriums, and litigation affect their financial obligations and future cash flows.
* **Action Required:** TSPs should review the details of their pending AGR dues, the terms of their moratoriums, and the option for equity conversion to manage their financial obligations effectively. They must also monitor and respond to any revisions or assessments of their dues.
**Government of India:**
* **Impact:** The government's equity stake in Vodafone Idea Limited increases, giving it a greater influence on the company's operations. The reforms aim to stabilize the telecom sector, protect consumers, and ensure continued service provision.
* **Action Required:** The government must monitor the performance of Vodafone Idea Limited and the overall health of the telecom sector. It needs to continue to assess the effectiveness of the reforms and consider further actions to support the sector.
**Consumers:**
* **Impact:** The government's reforms are intended to protect consumer interests by ensuring the continued provision of telecom services and promoting healthy competition.
* **Action Required:** Consumers may benefit from improved services and competitive pricing due to the reforms. No direct action is required from consumers.
Key Entities Referenced
Vodafone Idea Limited VIL: Telecom company in which the Government of India holds equity shares.
Adjusted Gross Revenue AGR: Basis for calculating License Fee LF and Spectrum Usage Charges SUC payable by telecom licensees.
Telecom Service Providers TSPs: Entities providing telecom services, affected by reforms and allowed moratorium on payments.
Companies Act, 2013: Indian legislation under which the conversion of spectrum auction dues into equity was approved for VIL, specifically Section 624.
Telecom Reforms, 2021: Government initiative aimed at addressing financial stress in the telecom sector and promoting healthy competition.
Bharti Group: Major telecom company with pending AGR dues, including Airtel and Hexacom.
Reliance Jio Infocomm Limited: Major telecom company with pending AGR dues under litigation.
Supreme Court: India's apex court, whose AGR judgment led to moratorium on annual payments of dues.
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
LOK SABHA
UNSTARRED QUESTION NO. 2944
ANSWERED ON 6TH AUGUST, 2025
EQUITY SHARES IN VODAFONE
2944. SHRI MATHESWARAN V S:
Will the Minister of COMMUNICATION be pleased to state:
(a) the details of the percentage of equity share held by the Government on Vodafone as on date;
(b) the details of AGE dues including interest pending against Telecom companies, Telecom
Company-wise;
(c) whether the Government is not taking coercive steps against Telecom companies, if so, the
reasons therefor; and
(d) the rational of the Government to buy equity shares of Vodafone which is a loss making entity?
ANSWER
MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT
(DR. PEMMASANI CHANDRA SEKHAR)
(a) The Government currently holds 49 percent of the equity shares of Vodafone Idea Limited (VIL).
(b) & (c) No payment obligation termed as ‘AGE dues’ exists under the terms and conditions of
the license agreement. However, License Fee (LF) and Spectrum Usage Charges (SUC) are payable by
the licensees based on their Adjusted Gross Revenue (AGR). The details of pending AGR dues including
interest of major telecom companies along with reasons for pendency are placed at Annexure I.
(d) To address the issue of financial stress in the telecom sector, the Government introduced a series
of structural and procedural reforms in September, 2021 aimed at promoting healthy competition,
protecting consumer interests, infusing liquidity, encouraging investment, and reducing the regulatory
burden on Telecom Service Providers (TSPs). These included a moratorium of up to four years in annual
payments of dues arising out of the AGR judgment of the Hon’ble Supreme Court and spectrum
purchased in auctions held before 2021. Option to the TSPs to pay the interest amount arising due to the
said deferment of payment by way of equity was also given. Further, at the option of the Government
and based on the prevailing situation, the outstanding amount of post-moratorium installments may be
converted into equity.
Pursuant to these reforms, several TSPs availed the moratorium benefits as permitted under the
guidelines. VIL also opted to convert the payment of interest for the moratorium period by way of equity
amounting to ₹16,133.1 Crores. The company issued 1,613.31 crore shares in February, 2023 to the
Government of India. On 29th March, 2025, the Government approved the request of VIL for the
conversion of outstanding spectrum auction dues amounting to ₹36,950 Crore into equity under Section
62(4) of the Companies Act, 2013, in line with the Telecom Reforms, 2021. Subsequently, the company
issued 3,695 crore equity shares to the Government in April, 2025.
1Annexure I
Annexure-I referred to in answer to part (b) & (c) of Lok Sabha Unstarred Question No. 2944
answered on 06.08.2025
Details of AGR dues of Major Telecom companies with interest updated up to 31.03.2025
(Amount in ₹ Crores)
Sl. Name of the AGR dues Remarks
No. company up to FY
2023-24
1 Bharti Group 48103 A four-year moratorium was granted on the annual
(Airtel and payments of dues arising out of the AGR judgment
Hexacom) and dues pertaining to the period up to FY 2018-19.
2 Tata Group 19259 The pending dues are to be paid in six annual
(TTSL & installments, in accordance with the terms and
TTML) conditions of the moratorium, as opted by the
3 Vodafone Idea 84933 companies.
Limited
The pending dues beyond FY 2019-20 are under
dispute / litigation.
4 Reliance Jio 1746 Under Litigation
Infocomm
Limited
5 BSNL 4 As per Cabinet Decision, AGR dues to be settled
through equity conversion up to FY 2026-27.
6 MTNL 12780 As per Union Cabinet Decision in July, 2022, the
AGR dues are to be examined by Committee of
Secretaries for further action.
Total 166825
Note:
1. AGR dues include License Fee (LF) and Spectrum Usage Charges (SUC).
2. The dues shown in the table pertain to major telecom companies, excluding those that are
undergoing insolvency or liquidation proceedings.
3. Except for the dues which are part of the Hon’ble Supreme Court judgment dated 01.09.2020
in the AGR matter, other dues are subject to revision, based on representations from TSPs,
departmental assessments, CAG / special audits, court cases, etc.
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