Airtel, Tata firms push for Vi-like relief on dues
What's the story
Telecom giants Bharti Airtel and two Tata Group companies are mulling a joint representation to the government. The move comes after the latter granted a 10-year debt holiday to Vodafone Idea (Vi). The companies are looking for equal treatment on adjusted gross revenue (AGR) liabilities. "We are exploring multiple avenues including a collective approach to the government," an executive told The Economic Times.
Financial burden
Tata firms and Airtel's AGR liabilities
Tata Teleservices (TTSL) and Tata Teleservices Maharashtra (TTML) have the third-largest AGR liabilities of ₹19,259 crore. Bharti Airtel's dues stand at a whopping ₹48,103 crore. Both companies are due to start repayments this March. However, Vi's dues worth ₹87,695 crore were frozen by the Department of Telecommunications (DoT) until 2035. The affected companies have decided to take immediate action and halt payments until 'fair' treatment is ensured for all players involved.
Competition concerns
Selective relief could distort competition
Industry executives have warned that selective relief could skew competition and burden operators who need to restart AGR payments from FY26. They stressed the need for a consistent policy framework. In September 2021, the government had given a four-year moratorium to telecom companies, allowing them to defer payments till FY26 while protecting the net present value (NPV) of dues. However, this moratorium ended in FY25 with companies expected to start six annual installments before FY26 ends.
Legal perspective
Supreme Court's stance on telecom relief
In November 2025, the Supreme Court refused to interfere with the government's policy decisions on telecom relief, given Vi's precarious financial position. The court noted it can't compel the government to provide identical relief to all operators and that policy measures aimed at preserving competition in the sector are within the Centre's domain. This ruling has opened a window for other affected players but clarified such support is a matter of government policy, not a legal right.
Market position
Airtel's financial recovery and future plans
Post the AGR setback in 2019, Bharti Airtel has made a comeback, returned to profitability, raised external funding, invested in networks and now holds a 40% market share. The company generated operating free cash flow of ₹55,300 crore in FY25. Its vice-chairman and MD Gopal Vittal had earlier said Airtel can make all necessary payments but still seeks similar treatment from the government.