Vodafone Idea has received official confirmation from the Department of Telecom regarding the status of its Adjusted Gross Revenue (AGR) dues, marking a significant development in the ongoing regulatory matter affecting the telecom operator.

AGR Dues Status Confirmed

The Department of Telecom has formally confirmed that the company's AGR dues have been frozen at a substantial amount as of December 31. This confirmation provides official clarity on the telecom operator's outstanding government liabilities.

Reassessment Provisions

While the AGR dues have been frozen at the specified amount, the Department of Telecom has indicated that this figure is not final. The dues amount remains subject to reassessment according to terms and conditions outlined in an official correspondence.

The reassessment framework is governed by specific terms detailed in a letter dated January 7, 2026. This indicates that the frozen amount may undergo review and potential adjustment based on the criteria established in the official communication.

Regulatory Implications

The freezing of AGR dues at ₹876.95 billion provides temporary certainty for the telecom operator regarding its government obligations. However, the provision for reassessment maintains flexibility for future adjustments based on regulatory review processes.

This development represents a significant milestone in the resolution of AGR-related matters for the telecom sector, with the Department of Telecom providing clear documentation of the current status while maintaining provisions for future review.

Vodafone Idea Limited has filed its quarterly monitoring agency report for the quarter ended December 31, 2025, detailing the utilization of proceeds from its Rs. 18,000 crore Further Public Offer (FPO). The report, prepared by CARE Ratings Limited and submitted on January 27, 2026, provides comprehensive insights into the deployment of funds raised through the public offering conducted in April 2024.

FPO Proceeds Utilization Overview

The monitoring agency report reveals that Vodafone Idea utilized Rs. 1,227.43 crore during Q3FY26, bringing the total utilization to Rs. 16,125.87 crore out of the net proceeds of Rs. 17,614.20 crore. The utilization during the quarter was entirely focused on network infrastructure expansion activities.

Object-wise Fund Deployment

The company's FPO proceeds were allocated across three primary objectives, with significant reallocation approved by the Board of Directors in May 2025. The network infrastructure expansion project received the major portion of quarterly utilization.

Network Infrastructure Expansion

The largest component involves purchasing equipment for network infrastructure expansion, including setting up new 4G sites, expanding capacity of existing 4G sites, and establishing new 5G sites. The original allocation of Rs. 12,750.00 crore was revised to Rs. 10,492.00 crore following the Board's reallocation decision.

Spectrum Payment Obligations

The second objective covers deferred payments for spectrum to the Department of Telecommunications (DoT) and associated GST. This allocation was increased from Rs. 2,175.32 crore to Rs. 4,433.32 crore through the reallocation process.

General Corporate Purposes

The allocation for general corporate purposes remained unchanged at Rs. 2,688.88 crore and has been fully utilized by the end of Q3FY25, with no additional deployment during the reporting quarter.

Deployment of Unutilized Funds

The monitoring agency report provides detailed information about the deployment of Rs. 1,488.33 crore in unutilized proceeds. These funds are strategically placed in fixed deposits across multiple banks to ensure capital preservation while generating returns.

Bank-wise Deployment Strategy

The unutilized funds are distributed across several leading banks including IDBI, State Bank of India (SBI), ICICI Bank, and Yes Bank. The fixed deposits carry varying maturity periods ranging from January 2026 to September 2026, with returns spanning from 4.00% to 7.26%.

The highest returns of 7.26% are being earned on IDBI fixed deposits, while the portfolio maintains liquidity with staggered maturity dates ensuring funds availability for ongoing projects.

Regulatory Compliance and Monitoring

CARE Ratings Limited, serving as the monitoring agency, confirmed that all fund utilization aligns with the objectives stated in the FPO prospectus. The report indicates no material deviations from the original plan, with the reallocation between objects properly approved through Board resolution dated May 30, 2025.

Implementation Timeline

The monitoring agency noted that the network infrastructure expansion and spectrum payment objectives are progressing as per the fiscal 2026 timeline outlined in the offer document. The general corporate purposes component was completed within the fiscal 2025 timeframe as originally planned.

The report confirms that no government or statutory approvals are required for the stated objectives, and no technical assistance or collaboration arrangements are necessary for project implementation. The monitoring agency found no favorable or unfavorable events that would materially affect the viability of the stated objectives.