Vodafone Idea has reportedly filed a fresh appeal seeking a reduction in its massive adjusted gross revenue (AGR) liabilities, warning that it may be unable to continue operations beyond the current financial year without securing additional loans.

According to Mint, the operator has petitioned to waive INR300 billion (US$3.5 billion) in penalties and interest. In its filing, Vodafone Idea argued that the Indian government is “handicapped” in providing any relief due to the binding nature of the Supreme Court’s AGR ruling. The company added that it would be unable to raise further loans to cover a crucial INR180 billion instalment owed to the Department of Telecommunications, due in March 2026.

Vodafone Idea’s financial year ends around the same time, on March 31, 2026.

Earlier, the Indian government had proposed a plan to ease AGR-related tax burdens for Vodafone Idea and Bharti Airtel but failed to gather sufficient support to push through a waiver of the levies.

Despite this, the government recently increased its stake in Vodafone Idea to 48.99%, signalling continued confidence in the country’s smallest mobile network operator.