The shares of Vodafone Idea surged over 6 percent in morning trade on June 24 after a report claimed that the central government is considering to provide the telecom major a significant relief on regulatory dues. The shares of the company were trading at Rs 6.96 apiece.

The positive sentiment was further fuelled after Telecom Minister Jyotiraditya Scindia said that India’s telecom sector can’t afford a duopoly and the government supports competition in all sectors.

"It's not good enough having a duopoly or one carrier or two carriers. India must have competition in every sector. India today is probably the only country in the world for competition in ISP domain," Scindia said at the event in Delhi.

The central government, which is the biggest equity owner of Vodafone Idea, is considering multiple options to provide relief on the outstanding regulatory dues of Rs 84,000 crore amid concerns that the telecom operator will go bankrupt, the Economic Times reported citing people familiar with the matter.

This comes after Vodafone Idea had reportedly cautioned the government that it won't be able to operate beyond FY26 without its support, and may have to go for insolvency.

As per the latest report, the centre is mulling several options which can potentially save the debt-ridden company from going insolvent. These includes increasing the repayment tenure to 20 years, from the current 6 years, and simultaneously applying simple interest and not compound interest on the outstanding dues.

Another option on the table is to charge a token amount of Rs 1,000-1,500 crore annually toward part payment of the dues until a final decision is taken on the broader adjusted gross revenue (AGR) issue, people familiar with the matter told ET.

The relief may be one of the several options, or a combination of many, the report added, citing sources.

Moneycontrol couldn't independently verify the report.

Vodafone Idea later issued a clarification that it has not yet received any communication from the government regarding the reported AGR relief. "As and when there is any development which requires disclosure, we will do the needful," it said in an exchange filing.

Notably, the company had announced earlier this year that Central government will convert its outstanding spectrum dues into equity shares. Following the conversion of equity shares, the shareholding of the Government of India in Vodafone Idea increased from 22.6 percent to 48.99 percent. "The promoters will continue to have operational control of the company," said the firm in a filing with the bourses.

Earlier this month, the centre reportedly said that it has no further plans to convert more arrears into equity. The Department of Telecommunications said that the company will not have funds to meet the liability in FY27 if it has to pay the entire Rs 18,064 crore instalment due by end-FY26.

The Supreme Court has repeatedly dismissed petitions of the telecom companies to waive off some AGR dues.

Vodafone Idea shares have crashed nearly 60 percent in the past one year, and are down over 13 percent in 2025 so far.