After Vodafone Idea, Airtel seeks government reassessment of AGR dues
What's the story
Bharti Airtel has announced its intention to take up the issue of adjusted gross revenue (AGR) dues with the Indian government. The decision comes after a recent Supreme Court ruling in the Vodafone Idea case. The ruling allows a comprehensive reassessment and reconciliation of AGR liabilities, including interest and penalties up to FY17. However, it remains to be seen if this relief will be extended to Airtel and other telcos.
Reaction
Vittal expresses disappointment over 2019 AGR judgment
During Bharti Airtel's Q2 earnings call on November 4, Gopal Vittal, the company's Vice Chairman and Managing Director, expressed disappointment over the 2019 AGR judgment. He said, "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."
Clarification
Airtel to take things one step at a time
Vittal welcomed the Supreme Court's clarification allowing the government to reassess dues in detail. He said, "The order has been made in the petition of Vodafone Idea. We are now planning to take up the matter with the government." He further added that Airtel will be taking things one step at a time, starting with reaching out to the government in coming days.
Dues discrepancy
Airtel's AGR dues stand at ₹44,000 crore
According to the Department of Telecommunications (DoT), Bharti Airtel's AGR dues stood at ₹44,000 crore. However, the operator claims its dues are around ₹13,000 crore. So far, Airtel has paid ₹18,000 crore toward these dues, including an ad hoc payment of ₹5,000 crore. In April this year, Bharti Airtel had also requested DoT to convert its AGR dues into equity.