The Union Cabinet is reportedly set to clear a relief package for Vodafone Idea Ltd., though its scope is said to be narrower than market expectations. News of the proposed measures triggered a sharp reaction in the stock of the financially stressed telecom operator.

According to sources cited, the government has decided to freeze Vodafone Idea’s adjusted gross revenue (AGR) dues at ₹87,695 crore and extend the repayment period from FY32 to FY41. However, AGR liabilities related to FY18 and FY19, which were finalised following a Supreme Court ruling in 2020, will continue to be paid between FY26 and FY31 without any modification.

In addition, the Department of Telecommunications will re-evaluate the frozen AGR dues using deduction verification guidelines and audit findings. A government-appointed committee will examine the assessment and take a final call on the matter. however, sources has not independently verified these details.

The move is aimed at safeguarding the government’s interests, given its nearly 49% stake in Vodafone Idea, while ensuring a structured recovery of dues. Officials believe the decision will also help maintain competition in the telecom sector and protect services for the company’s roughly 20 crore subscribers.