After Vodafone Idea relief, Airtel reportedly seeks equity swap for ₹41,000 crore dues

Bharti Airtel has reportedly written to the Department of Telecommunications (DoT), requesting the conversion of over ₹41,000 crore in adjusted gross revenue (AGR) dues into equity—mirroring rival Vodafone Idea’s recent move. If approved, the proposal could give the government a 2–4% stake in India’s second-largest telecom operator.

In a letter dated April 1, Airtel is said to have urged the DoT to ensure a level playing field and non-discriminatory policy enforcement across the telecom sector. Business Today could not independently verify the contents of the letter.

The request follows the government’s recent nod to Vodafone Idea’s plan to convert ₹36,950 crore worth of spectrum dues into equity, raising its stake in the debt-laden telco to 48.99%.

Airtel reportedly stated that while it is entitled to convert all its dues—including those outside the government’s moratorium window—it is, for now, limiting the request to AGR dues only. The company’s total outstanding dues to the government are pegged at over ₹95,000 crore, including ₹53,500 crore in spectrum liabilities.

Airtel has already prepaid its spectrum dues from the 2021 and 2024 auctions, and continues to pay for the 5G spectrum acquired in 2022. The company is believed to have pointed out that such prepayments should not put it at a disadvantage, and it reserves the right to approach the DoT in the future for relief or adjustment.

The request comes at a time when the government has deferred its decision on waiving interest and penalties on AGR dues—reportedly due to a lack of consensus at the top. Had the waiver been approved, it would have offered over ₹1 lakh crore in relief to legacy operators, with Vodafone Idea and Airtel being the biggest beneficiaries.

However, reports suggest that any relief to Airtel might draw scrutiny given its financial strength. The telco posted a net profit of ₹14,760.7 crore in the December quarter on revenues of ₹46,878 crore, with an ARPU of ₹245 and cash reserves of ₹9,922 crore.

Under the telecom relief package announced in 2021, Airtel’s moratorium on AGR dues runs through March–April 2026. The AGR crisis stems from a 2019 Supreme Court ruling that backed the government’s interpretation of adjusted gross revenue, resulting in ₹1.47 lakh crore in dues—₹92,642 crore in licence fees and ₹55,054 crore in spectrum usage charges, the bulk of it comprising penalties and interest.