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Voda-Idea Financial Crisis: The troubles of Voda Idea, the country’s third largest private telecom company, are not decreasing. Even though the Supreme Court has given the government permission to consider relief regarding the AGR outstanding of Rs 78 thousand crores on the company, the losses and total dues of the company have become very high.
New Delhi. Remember the decade of 2010 when only one private company used to compete with BSNL in the country’s telecom sector. Hutchinson Essar started telecom services in India in the year 1994 and in the year 2007 it was bought by Vodafone Group, after which the name was changed to Vodafone-Essar Limited. At that time, after BSNL, most of the people had the service of this company. Later, Idea and Vodafone merged and a new company Vodafone-Idea was formed, which still provides services. But, today this company has outstanding of more than Rs 2 lakh crore, out of which it is hoping to get relief from the government for Rs 78 thousand crore.
At present, debt-ridden Vodafone Idea (Vi) Chief Executive Officer (CEO) Abhijeet Kishore said that the company is working closely with the government and is hopeful of finding the best and long-term solution for the adjusted gross revenue dues of Rs 78,500 crore. Kishor said the company is approaching multiple sources including banks and non-banking finance companies to raise funds for long-term financing, which also depends on the resolution of the adjusted gross revenue (AGR) issue.
Preparation to take loan from banks
The CEO said that we are looking for the solution that is most appropriate and in line with the long-term vision of the government. We believe that since the Supreme Court order has come recently, banks will have some reliance on it for long-term funding. The Supreme Court has allowed the government to reconsider and take an appropriate decision with respect to the additional AGR demand raised for the period up to financial year 2016-17. Besides, permission has also been given to comprehensively re-evaluate and resolve all AGR dues including interest and penalty.
How much bank loan is there now?
Kishore said that by the end of September 2025, the AGR liability of the company was about Rs 78,500 crore. Vi’s outstanding loan from banks as of September 30, 2025 (including interest earned but not payable) is Rs 15.42 crore. The deferred payment liability (including accrued but not payable, interest) for spectrum which is payable in the years up to FY 2043-44 and AGR which is payable in the years up to FY 2030-31 totals Rs 2,01,409 crore.
Company loses thousands of crores
On one hand the company has huge outstanding dues and on the other hand it is continuously incurring losses. VIL (Vodafone Idea Limited) has suffered a loss of Rs 12,132 crore in the first half (April-September) of the current financial year 2025-26 and its net worth as of September 30 was negative Rs 82,460 crore. This means that the market capital of the company is currently running in negative. That means, more outstanding and debt and less value of the company.
