Mumbai/New Delhi, Nov. 20 -- Vodafone Idea (Vi) should not be alive come 2026. By every conventional financial and legal metric, the company should collapse under the weight of its massive adjusted gross revenue (AGR) dues- Rs.83,400 crore at last count-with instalments of nearly Rs.18,000 crore annually beginning March 2026. The company's cash flows are nowhere near adequate. Even its promoters, the Aditya Birla Group and Vodafone Group Plc, acknowledged that without extraordinary relief, Vi's fate was sealed.

Yet, in a twist that would have seemed impossible even a few months ago, India's government has not only become the single largest shareholder in Vi-with a 48.9% stake-but has persuaded the Supreme Court to permit something it had...