Vodafone Idea has warned the Telecom Department that it may not survive beyond FY26 without government support on AGR dues.
Vodafone Idea has warned that in the absence of government support, the value of the government’s equity stake could fall to zero.
The financially stressed telco also claimed that it has not received support from banks despite a ₹26,000 crore equity infusion and the government’s equity conversion.
Vodafone Idea told the government that without its support, bank funding will not progress, and the company will not be able to operate beyond FY26.
If government support does not materialise and Vodafone Idea fails to pay its adjusted gross revenue (AGR) dues.
The company will be forced to approach NCLT, a process that could be long drawn.
The company stated that it is designed for enterprise deployment and excels in coding, STEM, and multimodal tasks.
If Vodafone Idea goes to NCLT, over 200 million subscribers could be impacted.
The company has requested an urgent hearing on the matter, scheduled for May 19.
Shares of Vodafone Idea are currently trading 3.87% higher at Rs 7.51. The stock has fallen 7% so far in 2025.
The outcome of this issue will significantly influence India's telecom landscape, the level of competition, and efforts towards digital inclusion.