Airtel, Tata Group Firms May Seek AGR Relief After Vodafone Idea Gets 10-Year Breather


New Delhi । Bharti Airtel and Tata Group telecom companies—Tata Teleservices (TTSL) and Tata Teleservices Maharashtra (TTML)—are likely to approach the government seeking relief on their adjusted gross revenue (AGR) dues, following the recent support extended to Vodafone Idea (Vi). According to a report by The Economic Times, the companies are considering joint discussions with the Centre and may also explore legal options.

The move comes after the Department of Telecommunications granted Vodafone Idea a 10-year moratorium on its AGR payments. Under this decision, Vi’s total dues of around ₹87,695 crore have been deferred until 2035, providing significant financial relief to the struggling telecom operator.

Push for Equal Treatment

Sources cited in the report suggest that Airtel and the Tata Group firms believe that if relief is extended to one telecom operator, others should be treated on similar terms. Industry officials have reportedly warned that selective relief could distort competition and put financial pressure on other players.

TTSL and TTML together have AGR dues of about ₹19,259 crore, while Bharti Airtel’s dues stand at approximately ₹48,103 crore. These companies were scheduled to begin repayments from March this year.

Vodafone Idea’s Relief

The government’s decision to grant Vodafone Idea a long-term pause on AGR payments is seen as crucial for the company’s survival. The relief eases cash flow pressure and is expected to help Vi raise bank funding to invest in its network, including 4G and 5G expansion.

In November 2025, the Supreme Court declined to intervene in the government’s decision to offer additional support to Vodafone Idea, citing the company’s fragile financial condition. The court noted that policymaking to protect competition in the telecom sector falls within the government’s domain, though it acknowledged that such a move could trigger similar demands from competitors.

Background of the AGR Issue

In September 2021, the government had allowed telecom operators to defer AGR payments for four years, until FY26. While immediate payments were paused, interest continued to accrue on the dues. The relief was aimed at helping the sector recover from prolonged financial stress.

What Lies Ahead

Legal experts say that Airtel and the Tata Group firms can approach the courts, but the outcome remains uncertain. The Supreme Court has previously clarified that AGR relief is a matter of government policy rather than a guarantee of equal treatment.

Experts also point out that Vodafone Idea’s situation differs significantly from that of its rivals. Since the 2019 AGR ruling, Bharti Airtel has returned to profitability, raised capital, expanded its network, and now commands nearly 40 per cent market share. This stronger financial position could make it harder for Airtel to argue for relief on the same grounds as Vi.

As discussions evolve, the government’s next steps will be closely watched, given their potential impact on competition and stability in India’s telecom sector.

Leave a Reply