Bharti Airtel’s AGR Dues to Be Scrutinised by DoT for Equity Conversion: Report

Bharti Airtel‘s request to convert its adjusted gross revenue (AGR) dues, amounting to approximately Rs 41,000 crore, into equity will undergo scrutiny by the Department of Telecom (DoT). An official source confirmed that the application is not automatic and requires a detailed evaluation before any final decision is made, ETTelecom reported.

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

Vodafone Idea’s Equity Conversion Precedent

The telecom company has sought similar relief to that granted to Vodafone Idea (VIL), whose dues, totaling Rs 53,000 crore, were converted into equity by the government. As a result, the government’s stake in Vodafone Idea has increased to 48.99 percent, up from 22.6 percent, following the conversion of Rs 36,950 crore worth of dues.

Also Read: Government Stake in Vodafone Idea Rises to 48.99 Percent After Fresh Equity Allotment

Government’s Role in AGR Dues Conversion

Earlier, the government had converted VIL’s debt of about Rs 16,130 crore, comprising interest arising from deferment of AGR and spectrum instalments, into equity in February 2023.

“The application does not mean that it will be processed automatically. It needs to be evaluated and scrutinised before any final decision is made,” the report quoted an official as saying.