India Considers One-Time Settlement of

IDEA

's ₹2 Trillion AGR Dues

India is currently considering a one-time settlement of

for the longstanding demand of nearly ₹2 trillion ($22.5 billion) in past-due fees owed by Vodafone Idea Ltd.. → This potential resolution is aimed at strengthening India's ties with the UK and helping the beleaguered telecom operator attract new investors. → The financial dispute centers on how India calculates the Adjusted Gross Revenue (AGR), a percentage of which is paid as license and spectrum fees. → The proposed resolution framework under discussion involves a waiver of interest and penalties, followed by a potential concession on the principal amount. → Officials are also actively weighing measures to ensure that any deal does not trigger legal challenges from other telecom operators that also owe AGR dues. → One option being discussed is requiring revival plans from all telecom operators in exchange for any concession, which would prevent Vodafone Idea from gaining an unfair advantage. → Vodafone Idea, which was formed by the merger of the local units of the British firm and Idea Cellular Ltd., has not reported a quarterly profit since 2016. → Reviving the company would help preserve competition in the country’s telecom market and is viewed as a diplomatic benefit to New Delhi by anchoring the UK as a stronger partner. → The government, which is now a 49% shareholder in Vodafone Idea following a debt-to-equity swap, has acknowledged the need for a solution given that public funds are now tied up in the carrier. The Supreme Court is scheduled to hear Vodafone's petition challenging the AGR dues calculation on October 6.