Aid granted by the federal government to Vodafone Thought (Vi) on its adjusted gross income (AGR) dues has triggered recent calls for for comparable assist from tons of of standalone web service suppliers (ISPs) and different non-telecom corporations burdened with giant AGR liabilities, based on an Financial Occasions report by Kiran Rathee dated January 4, 2026.
Additionally Learn: Vodafone Thought Will get 10-Yr Breather on Over 95 P.c of AGR Dues
Vi Aid Rekindles Lengthy-Standing AGR Dispute
These firms have been going through calls for operating into 1000’s of crores following the Supreme Court docket’s 2019 ruling that broadened the definition of AGR, prompting the Division of Telecommunications (DoT) to boost dues not solely on telcos but additionally on ISPs, VSAT operators, and a number of other public sector entities.
ISPs Search Parity as Monetary Stress Mounts
“Most of the smaller corporations are struggling financially resulting from intense competitors, not solely from contemporaries but additionally from large telecom corporations,” Rajesh Chharia, president of the Web Service Suppliers Affiliation of India (ISPAI), was quoted as saying. “The ISPs, too, are saddled with 1000’s of crores of AGR dues and an identical aid or waiver also needs to be given to those corporations,” he reportedly added.
On Wednesday, the Union Cupboard authorised a aid package deal for Vodafone Thought, granting the telco a 10-year moratorium on the cost of over 95 p.c of its AGR dues. The dues as much as FY17 have been frozen at Rs 87,695 crore as of December 31, 2025, and a committee will reassess the liabilities.
“The federal government giving aid to Vi offers hope to 1000’s of standalone ISPs, who’re eagerly ready for implementing DCC (Digital Communications Fee)-approved coverage of creating mounted line broadband companies free from 8 p.c licence charges on income for 10 years,” Chharia reportedly stated.
ISPAI represents greater than 100 ISPs, together with Sify, Tikona, Tata Communications, Powergrid, Tata Sky, Join Broadband, Netmagic and Excitel.
DoT Maintains Aid Is Firm-Particular
DoT officers, nevertheless, confused that different firms searching for comparable aid should get the highest court docket’s nod for a similar. “The package deal to Vi has been given following the highest court docket order, which particularly requested that the order applies to the corporate solely,” one official was quoted as saying.
In accordance with the report, business gamers argue that the dimensions of AGR liabilities throughout telecom and non-telecom sectors raises bigger coverage questions.
The difficulty has broader implications for the sector. Non-telecom corporations are estimated to owe over Rs 82,000 crore in AGR dues. Preliminary DoT calls for on non-telcos had exceeded Rs 4 lakh crore, although almost 96 p.c of the dues had been later withdrawn for some state-run entities corresponding to ONGC, GAIL and PowerGrid, prompting different corporations to hunt comparable therapy by authorized channels.
Additionally Learn: Govt Might Exit Vodafone Thought After Aid Package deal, Stake Sale in Works
Broader Coverage Questions Loom Over Telecom Sector
Bharti Airtel, which is scheduled to pay greater than Rs 42,000 crore in AGR dues beginning subsequent fiscal, has indicated it is going to strategy the DoT for reassessment following the Supreme Court docket’s permission for a complete reconciliation of liabilities, together with curiosity and penalties. Nevertheless, the corporate has not but formally sought aid.
To date, Vodafone Thought stays the one personal firm to obtain such authorities assist. Chharia reportedly famous ISPs kind the spine of the nation’s broadband infrastructure, significantly in rural India.
