Bharti Airtel to Seek Reassessment of AGR Dues with Government

Airtel to Seek Reassessment of AGR Dues Following Supreme Court Relief to Vodafone Idea
A day after the Supreme Court allowed the government to reassess Vodafone Idea’s adjusted gross revenue (AGR) dues up to FY17, Bharti Airtel said it would approach the Department of Telecommunications (DoT) for a similar reassessment.

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Also Read: Bharti Airtel Writes to DoT for Equity Conversion of Statutory Dues

Airtel’s Welcomes AGR Move

“We welcome the fact that the recent order of the Supreme Court permits the government to undertake a comprehensive assessment, reassessment and reconciliation of the AGR dues, including interest and penalties up to FY17,” said Gopal Vittal, vice chairman and managing director of Bharti Airtel, during an earnings call, according to multiple media reports. “The order has been made in the petition of Vodafone Idea. We are now planning to take up our matter with the government,” he added.

“We’ve always maintained that the 2019 AGR judgment was a body blow to the industry. The fact that even calculation errors were not entertained was deeply disappointing,” Vittal said during the company’s Q2 earnings call on November 4.

AGR and Financial Impact on Telecom Operators

AGR represents a portion of a telecom operator’s gross revenue that is used to determine regulatory payments. Telecom companies are required to pay 8 percent of their AGR as licence fees, including a 5 percent contribution to the Digital Bharat Nidhi.

Earlier this week, the Supreme Court clarified that the government could reassess Vodafone Idea’s AGR dues up to FY17, including interest and penalties, offering significant relief to the financially distressed operator. However, the order applies only to Vodafone Idea, as other telecom firms had not filed petitions on the additional AGR demands raised by DoT for the same period.