Vodafone Warns It Cannot Operate Beyond Next Fiscal Without Government Support
Struggling telecom operator Vodafone Idea has informed the Department of Telecommunications (DoT) that it will not be able to continue operations beyond FY 2025–26 without immediate financial assistance and relief from the government.
The company, which is already heavily debt-ridden, emphasized that unless the government provides deferment or waiver on the Adjusted Gross Revenue (AGR) dues and extends timely financial support, it will cease to remain operational. Vodafone Idea has asked the government to take urgent action or risk the company reaching a stage of non-recovery for banks and investors.
Key Points:
- Vodafone Idea requires government intervention to sustain operations beyond March 2026.
- The company is unable to raise bank funding without central support.
- A formal letter was sent to the Telecom Secretary from Vodafone Idea’s CEO Akshaya Moondra.
- The company warned that without aid, it will reach a point of no return financially.
- Vodafone Idea also approached the Supreme Court on Thursday, seeking relief on nearly ₹30,000 crore in AGR dues, requesting an exemption or extension on pending payments.
As of now, the government has not responded to Vodafone Idea’s plea. The telecom firm is hoping for urgent policy-level decisions, as its liquidity crisis continues to worsen, threatening the sustainability of operations and impacting competition in India’s telecom sector.
