Bharti Airtel has reportedly urged the Department of Telecommunications (DoT) telecom for urgent action on its request to convert adjusted gross revenue (AGR) dues into government equity, highlighting the high debt burden of its promoter Bharti Telecom (BTL), and the need to bolster its balance sheet to invest in infrastructure and emerging technologies.
In follow-on letters to DoT after its initial conversion request, Airtel has pointed out that the debt of BTL has reached around Rs 410 billion and that the promoters have limited ability to invest further due to financial strain. The telco also flagged that rating agencies have expressed concerns over the high promoter debt, noting that such agencies typically consolidate the holding company’s debt with that of the operating company.
Airtel further stated that it carries a debt burden of Rs 1.77 trillion, a significant portion of which comprises AGR dues, and that maintaining strong credit ratings is crucial for securing future access to capital. If the government approves the equity conversion, the telco mentioned that it would improve the company’s balance sheet and cash flow, helping it invest in fibre, data centres, submarine cables, and emerging technologies like 5G SA and 6G.
