The relief, though, may be partial as a note from the government stressed, “AGR dues pertaining to FY 2017-18 and FY 2018-19 (that were already finalised vide order of Supreme Court dated 01.09.2020) shall be payable by M/s VIL over the period FY 2025-26 to FY 2030-31 without any change.”
VIL did not have an immediate statement in response to the freezing. Union Minister Ashwini Vaishnaw, who made announcements on the Cabinet’s decisions from the day’s meeting, did not include this development in his prepared remarks.
Based on Supreme Court orders allowing the government to grant such relaxations, VIL had made a representation in recent weeks. After considering the request, the government decided to freeze the dues, and reschedule them “over FY 2031-32 to FY 2040-41,” the note said. “The AGR dues frozen as on 31.12.2025 shall also be reassessed by DoT [Department of Telecommunications] based on Deduction Verification Guidelines dated 03.02.2020/audit reports. The outcome shall be decided by a committee appointed by the Government and that shall be binding on both parties.”
The note said that the telecom sector is “highly concentrated,” and that the government “would like to have multiple players in such critical sectors”. The Union government has a 49% equity stake in VIL, as a result of a previous relief intervention for the struggling firm. “The above steps will protect the interest of GOI stake of 49% in VIL, enable orderly payment of dues to Government of India by way of Spectrum Auction Charges and AGR Dues, ensure competition in the sector and protect the interest of 20 crore VIL consumers,” the note said.
