After Vodafone Idea, Airtel seeks AGR relief, find out the full story

Bharti Airtel has appealed to the government for relief on its AGR dues. The DoT clarified that the current relief is limited to Vodafone Idea only. According to the government, Airtel will need to seek an order from the Supreme Court to receive relief. The company owes approximately ₹42,000 crore.

After Vodafone Idea, Bharti Airtel has appealed to the government for relief in AGR dues. Citing the relief given to Vodafone Idea, the company has sought similar facility for itself. The Department of Telecommunications (DoT) told the Parliament that Airtel has made an official submission in this matter, but the relief given so far is limited to Vodafone Idea only. The Department of Telecommunications also clarified that the order issued was only for the concerned telecom company Vodafone Idea.

According to the department, Vodafone Idea's AGR dues have been restructured in accordance with Supreme Court orders. Following the Supreme Court's decision, the Union Cabinet approved a five-year moratorium on AGR dues, followed by a 10-year payment arrangement, and the restructuring of the outstanding amount.

Jyotiraditya Scindia had already clarified the government's stand

Union Minister Jyotiraditya Scindia had already made it clear that Bharti Airtel would have to approach the Supreme Court itself to seek relief on its AGR dues. This means that the government cannot provide direct relief on its own, unless a similar court order is obtained as in the case of another company.

What is the AGR dispute all about?

The dispute over AGR (Adjusted Gross Revenue) has been ongoing since 2019. That year, the Supreme Court upheld the Department of Telecommunications' definition. According to this definition, telecom companies are required to pay license fees and other charges on a significant portion of their revenue. Following this decision, companies suddenly faced significant outstanding dues, as they had to settle accounts for several years. This decision also had a significant impact on Bharti Airtel. The company faces AGR dues of approximately ₹42,000 crore. This is why Airtel is now seeking relief to alleviate this significant financial pressure.

Bharti Airtel has fallen 12.34% so far this year

Amid all this news, Bharti Airtel shares closed 0.82% higher at ₹1,850 today. However, the stock has declined 1.56% in the past month, 2.74% in the past six months, and 12.34% so far this year. Meanwhile, the stock has delivered a positive return of 7.27% over the past year.

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