Shares of Vodafone Idea surged in early trade following the announcement. The stock touched an intraday high of Rs 12.40 on the BSE, up 7.8 per cent, while trading at Rs 12.05 on the NSE at 9.55 a.m., up 4.78 per cent.

According to the company's exchange filing, Vodafone Idea will pay Rs 124 crore annually from March 2026 to March 2031, followed by Rs 100 crore annually from March 2032 to March 2035. The remaining AGR dues will be settled through equal annual instalments between March 2036 and March 2041.

The Department of Telecommunications (DoT) will set up a committee to reassess the AGR liability, and its decision will be final, the financially stressed telecom operator said.

Vodafone Idea has been facing prolonged financial challenges due to intense tariff competition, heavy debt and the burden of redefined AGR liabilities. AGR dues refer to payments telecom companies owe the government based on revenue that includes telecom and non-telecom income streams such as interest, rent and asset sales.

The operator has reported sustained losses, a shrinking subscriber base and limited ability to invest in 4G and 5G expansion, while rivals continue rapid network rollouts.

Analysts said the government-approved relief package aims to protect state revenue, ensure orderly recovery of dues, maintain healthy sectoral competition and safeguard the interests of nearly 200 million Vodafone Idea subscribers.

IANS