Bharti Airtel‘s request to transform its adjusted gross income (AGR) dues, amounting to roughly Rs 41,000 crore, into fairness will endure scrutiny by the Division of Telecom (DoT). An official supply confirmed that the appliance just isn’t automated and requires an in depth analysis earlier than any closing determination is made, ETTelecom reported.
Additionally Learn: Bharti Airtel Writes to DoT for Fairness Conversion of Statutory Dues: Report
Vodafone Concept’s Fairness Conversion Precedent
The telecom firm has sought related reduction to that granted to Vodafone Concept (VIL), whose dues, totaling Rs 53,000 crore, have been transformed into fairness by the federal government. Because of this, the federal government’s stake in Vodafone Concept has elevated to 48.99 %, up from 22.6 %, following the conversion of Rs 36,950 crore price of dues.
Additionally Learn: Authorities Stake in Vodafone Concept Rises to 48.99 P.c After Contemporary Fairness Allotment
Authorities’s Function in AGR Dues Conversion
Earlier, the federal government had transformed VIL’s debt of about Rs 16,130 crore, comprising curiosity arising from deferment of AGR and spectrum instalments, into fairness in February 2023.
“The applying doesn’t imply that it will likely be processed routinely. It must be evaluated and scrutinised earlier than any closing determination is made,” the report quoted an official as saying.
Additionally Learn: Airtel to Purchase 400 MHz Spectrum in 26 GHz Band From Adani Information Networks
Bharti Airtel’s Spectrum Dues
Whereas the telecom reforms coverage of 2021 permits for the conversion of each curiosity liabilities and principal quantities associated to AGR and spectrum dues, Bharti Airtel has already cleared its dues for spectrum bought previous to the 2021 public sale. The corporate has additionally bought spectrum price Rs 68,598 crore in current auctions (2021, 2022, and 2024), which is eligible for related conversion into fairness.
The end result of the DoT’s evaluation will decide whether or not Airtel’s AGR dues could be transformed into fairness, a transfer that might assist alleviate the corporate’s monetary obligations whereas supporting its ongoing investments within the sector.
