Telecom operator Vodafone Idea told the telecom department that without the government’s timely support on AGR, it will not be able to operate beyond FY26 as the bank funding discussions will not move forward.

The telco shot off a letter to the department on April 17, 2025, making a strong case for a lifeline, saying “no support will lead to a point of no return”.

“Without the government of India’s timely support on AGR, VIL will not be able to operate beyond FY26 as the bank funding discussions will not move forward,” VIL CEO Akshaya Moondra wrote in a letter to the DoT secretary.

The Supreme Court on Thursday agreed to hear a fresh plea of Vodafone Idea seeking waiver of around ₹30,000 crore adjusted gross revenue (AGR) dues.

Vodafone Idea, in the letter, cautioned DoT that without debt disbursement from banks, the investments it planned would not take place.

“Operational performance improvement will be stalled. More importantly, the funds raised by the company will be utilised soon, and the entire capex cycle will come to a halt.

“In such a case, the entire fundraising done over the last 12 months and investment done so far by the company, as well as the equity stake of the government, including the recent conversion, will lose value,” VIL said.

According to Vodafone Idea, without government support, and in case VIL is not able to pay the AGR dues, the company will have to go through a process of NCLT, which would be a drawn-out process. In such a scenario, the network as well as spectrum assets will lose value with the service being disrupted even for a short period, the telco said.

VIL said about 200 million users would be affected and would have to port out. Timely support will primarily benefit the general public and the Indian economy at large, it said.

While it will ensure continuity of services to about 200 million subscribers, it will also offer continued direct or indirect employment to about 30,000 people and positive returns to VIL’s over 6 million shareholders.