Govt’s Rs 1 Lakh Crore Relief Plan: A Lifeline for Telcos

The Indian government plans a Rs 1 lakh crore relief package for telecom companies. This proposal waives 50% of interest and 100% of penalties on Adjusted Gross Revenue (AGR) dues for Vodafone Idea and Bharti Airtel. The Supreme Court’s 2019 ruling caused financial strain due to hefty AGR dues.

The package will reduce Vodafone Idea’s dues by over Rs 52,000 crore and Bharti Airtel’s by nearly Rs 38,000 crore. This financial aid helps maintain competition in the telecom sector, preventing a duopoly dominated by Reliance Jio and Bharti Airtel.

The highest levels, including the finance ministry, telecom department, and cabinet secretariat, discuss the proposal. If approved, this will be the second aid for the debt-laden telecom sector since September 2021.

This move shows the government’s commitment to a competitive telecom market with healthy private players and state-run BSNL. The announcement is expected in the Union Budget 2025-26.