India’s government was reported to be considering waiving a significant portion of the interest and penalties levied on Vodafone Idea and Bharti Airtel, accounting for the majority of the adjusted gross revenue (AGR) dues the companies owe the government.

The Economic Times reported the government proposed cutting the interest owed by 50 per cent, and completely eliminating the penalties and related interest in an effort to boost competition in the telecoms market, which is currently dominated by Reliance Jio and Airtel.

ICICI Securities estimated in a research note the relief measures could reduce Vodafone Idea’s liability by about INR520 billion ($6 billion) and Airtel’s by INR380 billion, Business Standard wrote.

Airtel and Vodafone Idea previously argued to the Supreme Court nearly 75 per cent of their total AGR comprised interest, penalties and interest on penalties.

In September 2024, India’s high court rejected petitions by the pair to recalculate their AGR levies.

Vodafone Idea is the third-largest operator in India with 205 million subscribers, behind Jio with 482 million and Airtel with 350 million.