The Union Cabinet on Wednesday approved a fresh relief package for Vodafone Idea, freezing its outstanding adjusted gross revenue (AGR) dues at Rs 87,695 crore as on December 31, 2025, granting a five-year moratorium on payments, and clearing the way for a reassessment of the capped statutory charge. The move offers near-term relief to the financially stressed telecom operator while deferring a final resolution of its liabilities. The measures are aimed at protecting the government’s financial interest as it holds about 48.9% equity in Vodafone Idea, while ensuring orderly recovery of statutory dues, preserving competition in a highly concentrated telecom market, and safeguarding services for the company’s roughly 200 million subscribers, officials familiar with the decision said.