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SBI-led consortium mulls ₹25,000cr loan for Vi
04 May 2026

A consortium led by the State Bank of India (SBI) is considering a debt funding of ₹25,000 crore for telecom giant Vodafone Idea (Vi).

The move comes after the Indian government slashed the company's dues by 27% last week.

The third-largest telco in India has proposed a three-year turnaround plan and is seeking an additional ₹10,000 crore for short-term working capital needs.

DoT slashes Vi's AGR dues by 27%
AGR reduction

The Department of Telecommunications (DoT) has revised Vi's adjusted gross revenue (AGR) liabilities from ₹87,695 crore to ₹64,046 crore. The move is a major cash-flow relief for the company.

Most of the payments will now be staggered between FY36-41, effectively giving Vi a 10-year moratorium on its liabilities and room to invest in network upgrades and expansions.

Bankers cautious about lending to Vi
Lending hesitance

Despite the positive AGR development, bankers remain cautious about Vodafone Idea's future. The company has lost market share to bigger rivals Reliance Jio and Bharti Airtel.

"The company's position, no doubt, has improved, but no bank wants to take the lead in lending to this company," a person aware of the discussions told The Economic Times.

SBI, the lead bank in the consortium, is looking for more banks to join before proceeding with the loan.

Vi aims for double-digit revenue growth
Network upgrades

Vi plans to spend ₹45,000 crore over the next three years on network upgrades and achieving 5G parity in key markets.

The company has already invested ₹18,000 crore, which has shown tangible results according to management.

The goal is to achieve double-digit annual revenue growth and triple its EBITDA in three years.

This will help Vi service its pending spectrum dues organically.

Spectrum payments remain a concern for banks
Payment obligations

Apart from AGR, Vi also has spectrum-related payments of ₹7,000 crore in FY27, ₹15,000 crore in FY28, and ₹28,000 crore in FY29.

While the latest AGR relief will substantially reduce government dues, bankers say Vi still needs to prove its paying capability.

"Vi has to improve its revenue per user to be back in the game, for which they have to invest," a second person aware of the details said.