New Delhi: The Union Cabinet on Wednesday (December 31) approved a comprehensive relief package for Vodafone Idea that freezes a substantial portion of the telecom operator’s adjusted gross revenue (AGR) liabilities amounting to Rs 87,695 crore, providing crucial breathing room to the debt-laden company.Under the approved package, these AGR dues of Rs 87,695 crore, frozen as of Dec 31, 2025, will be repaid over a 10-year period, starting from financial year 2031-32 and continuing until 2040-41.The Department of Telecommunications will reassess the frozen amount at a later stage based on Deduction Verification Guidelines and audit reports, with a government-appointed committee making the final determination.However, the relief does not cover AGR liabilities relating to Financial Years 2018 and 2019, which were already finalised under a Supreme Court order. Those amounts remain payable by Vodafone Idea under the existing schedule between 2026 and 2031.The move, as per government sources cited in Indian media, is aimed at stabilising one of India’s major telecom players, safeguarding competition in the sector and protecting services for its millions of subscribers. The government, which holds nearly 49% stake in Vodafone Idea following earlier conversion of dues into equity, has framed the relief as necessary to support orderly repayment of statutory dues while preserving industry balance.Despite the relief, Vodafone Idea’s shares faced volatility in markets, with prices slipping sharply on initial reaction. Analysts said the decline reflected investor disappointment that the announcement did not include an immediate waiver or reduction in the headline liability, only a deferral and reassessment pathway.