Bharti Airtel has reportedly approached the Department of Telecommunications (DoT) seeking the conversion of over Rs 410 billion in adjusted gross revenue (AGR) dues into equity. If the request is approved, the government is expected to acquire a 2 to 4 per cent stake in the company. The communication was sent shortly after Vodafone Idea Limited received approval for a similar spectrum dues-to-equity conversion.
In its letter, Airtel has outlined total government dues of over Rs 950 billion, comprising Rs 535 billion in spectrum payments and Rs 410 billion in AGR dues up to 2018-19. While the company stated it is eligible to convert all such dues into equity (including amounts beyond the moratorium period), it has chosen to restrict the request to AGR dues for now.
Airtel further highlighted that it had already prepaid its spectrum liabilities for the auctions held before 2021 and for the 2024 auctions. The company still owes payments for the 5G spectrum acquired in 2022. Airtel stressed that its proactive payments should not result in any disadvantage and has reserved the right to revisit the matter of prepayment treatment with DoT to ensure fairness.
