New Delhi, Dec. 31 -- The fate of Vodafone Idea Ltd hangs in the balance, with the Union cabinet on Wednesday clearing a relief plan that punctured hopes, hammered its shares, and shook its fundraising hopes.

According to officials familiar with the matter, the cabinet has decided to freeze the struggling telco's pending adjusted gross revenues (AGR) dues at Rs.87,695 crore for five years. The amount can be paid from fiscal year 2032 (FY32) through FY41.

That means the AGR amount will not increase, but it does not also reduce the overall AGR dues of the company, even though the officials said that the recalculation is still on the table and the amount may reduce later. A Supreme Court ruling in October had allowed the government to reas...