Bharti Airtel, the second-largest telecom operator in India, could soon be in a battle with the government over AGR (adjusted gross revenue) dues. Here's the background. Vodafone Idea asked for help from the government for AGR dues payments, the government gave it. The government said that the supreme court order played a huge role in this. But now, Bharti Airtel believes that equal treatment should be given to all the telecom operators. That is why, the AGR dues relief should also be given to Airtel.
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Vi got a major relief and is now only going to start paying the major chunk of AGR dues from 2036. While Airtel has the money to pay it off, there's still no reason to not get a relief as that would only improve the cash flow of the company even further as there's no interest on the delayed payment.
Rajan Bharti Mittal, vice chairman and managing director of Bharti Enterprises, on Thursday said, "We have written to the concerned department of the government, and waiting for their responses. We are hoping that equitable treatment should be given to us. Even other companies like Tata's who have gone through this."
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Airtel has to pay about Rs 38,000 to Rs 40,000 crores in AGR dues to the government. But the government has a slightly different view on it. The union telecom minister, Jyotiraditya Scindia, recently said, "The decision that the Government of India has taken is based on the judgment that was pronounced by the Supreme Court where it has seen Vodafone as a special case, both because it has 20 crore customers, as well as the fact that the government owns 49% of its equity. Based on that decision of the Supreme Court, the government has taken it taken a view in terms of a policy what needs to be done with regard to the AGR dues and the spectrum views remain the same."
