Under the revised payment plan, the telecom operator will pay Rs 124 crore a year from March 2026 to March 2031. It will then pay Rs 100 crore annually from March 2032 to March 2035. The remaining dues will be cleared in equal instalments between March 2036 and March 2041.

The Department of Telecommunications will also form a committee to reassess the AGR dues. The decision of the committee will be final.

AGR dues are licence fee and spectrum charges linked to adjusted gross revenue. This includes even non telecom income. Vodafone Idea has been under financial stress due to high AGR liabilities, intense competition and heavy debt.

India's third-largest telecom operator, Vodafone Idea is backed by Aditya Birla Group and Vodafone Group. The company holds 5G spectrum in 17 circles and mmWave spectrum in 16 circles, offering services across 2G, 4G and expanding 5G networks.

The telco reported a consolidated net loss of Rs 5,524 crore in Q2 FY26, narrowing from a net loss of Rs 7,175.90 crore in the same quarter last year. Net sales increased 2.3% to Rs 11,169.60 crore in Q2 FY26 compared with Rs 10,918.20 crore posted in the same quarter last year.