After Vodafone Idea Relief, Airtel Reportedly Seeks Equity Swap For ₹41,000 Crore Dues

Bharti Airtel has reportedly written to nan Department of Telecommunications (DoT), requesting nan conversion of complete ₹41,000 crore successful adjusted gross gross (AGR) dues into equity—mirroring rival Vodafone Idea’s caller move. If approved, nan connection could springiness nan authorities a 2–4% liking successful India’s second-largest telecom operator.

In a missive dated April 1, Airtel is said to person urged nan DoT to guarantee a level playing section and non-discriminatory argumentation enforcement crossed nan telecom sector. Business Today could not independently verify nan contents of nan letter.

The petition follows nan government’s caller motion to Vodafone Idea’s scheme to person ₹36,950 crore worthy of spectrum dues into equity, raising its liking successful nan debt-laden telco to 48.99%.

Airtel reportedly stated that while it is entitled to person each its dues—including those extracurricular nan government’s moratorium window—it is, for now, limiting nan petition to AGR dues only. The company’s full outstanding dues to nan authorities are pegged astatine complete ₹95,000 crore, including ₹53,500 crore successful spectrum liabilities.

Airtel has already prepaid its spectrum dues from nan 2021 and 2024 auctions, and continues to salary for nan 5G spectrum acquired successful 2022. The institution is believed to person pointed retired that specified prepayments should not put it astatine a disadvantage, and it reserves nan correct to attack nan DoT successful nan early for alleviation aliases adjustment.

The petition comes astatine a clip erstwhile nan authorities has deferred its determination connected waiving liking and penalties connected AGR dues—reportedly owed to a deficiency of statement astatine nan top. Had nan waiver been approved, it would person offered complete ₹1 lakh crore successful alleviation to bequest operators, pinch Vodafone Idea and Airtel being nan biggest beneficiaries.

However, reports propose that immoderate alleviation to Airtel mightiness tie scrutiny fixed its financial strength. The telco posted a nett profit of ₹14,760.7 crore successful nan December 4th connected revenues of ₹46,878 crore, pinch an ARPU of ₹245 and rate reserves of ₹9,922 crore.

Under nan telecom alleviation package announced successful 2021, Airtel’s moratorium connected AGR dues runs done March–April 2026. The AGR situation stems from a 2019 Supreme Court ruling that backed nan government’s mentation of adjusted gross revenue, resulting successful ₹1.47 lakh crore successful dues—₹92,642 crore successful licence fees and ₹55,054 crore successful spectrum usage charges, nan bulk of it comprising penalties and interest.

Published on: Apr 25, 2025 9:13 AM IST