New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a relief package for Vodafone Idea, freezing its adjusted gross revenue (AGR) dues of Rs 87,695 crore, which will now be payable over a 10-year period from FY32 to FY41.

Vodafone Idea’s AGR dues frozen as of December 31 and will be reassessed by the Telecom department. The AGR dues pertaining to FY18 and FY19 shall be payable by Vodafone Idea from FY26 to FY31 without change.

The decision provides immediate financial relief to the debt-laden telecom operator, which has been grappling with mounting statutory liabilities and cash flow stress. An official announcement from the government and the company’s response are awaited.