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Airtel, Tata group firms likely to jointly seek AGR relief similar to Vi 

Airtel, Tata group firms likely to jointly seek AGR relief similar to Vi 
Airtel Tata AGR relief

SUMMARY

According to reports, Bharti Airtel and the telecom companies Tata Teleservices Limited  (TTSL) and Tata Teleservices Maharashtra Limited (TTML) of the Tata Group are thinking  of approaching the Indian government together to request exemption from their adjusted  gross revenue (AGR) obligations. This comes after Vodafone Idea (Vi) was given a long term extension on its AGR payment requirements by the Department of Telecommunications  (DoT). 

According to a story published in The Economic Times, the corporations feel that other  telecom operators operating under the same regulatory framework should be given the same  consideration if relief has been granted to one of them. According to reports, the companies  are assessing the potential for group talks with the government and may, if necessary, go into  legal options. 

Vodafone Idea’s AGR Relief and Its Implications 

Vodafone Idea has recently received a significant boost with a 10-year moratorium on its  AGR dues, as granted by the Department of Telecommunications (DoT). The company’s  outstanding AGR liability, which stands at approximately ₹87,695 crore, has now been  postponed until 2035. 

This decision has come as a major relief for Vodafone Idea during a crucial period. The  extended repayment timeline alleviates immediate cash flow pressures and enhances the  company’s capacity to secure funding from banks and financial institutions. This financial  respite is anticipated to bolster Vodafone Idea’s ongoing investments in network expansion,  including stabilising its 4G services and rolling out 5G technology. Many industry observers  view this support as vital for the company’s survival in the fiercely competitive Indian  telecom landscape. 

Concerns from Airtel and Tata Group Firms

Tata Teleservices Limited (TTSL) and Tata Teleservices (Maharashtra) Limited (TTML)  collectively face AGR dues nearing ₹19,259 crore, while Bharti Airtel’s outstanding AGR  liability is approximately ₹48,103 crore. These firms were expected to resume their AGR  repayments starting in March this year, following the previous moratorium. 

Industry stakeholders have raised concerns that providing extended relief solely to one  operator could create an uneven playing field. Telecom executives argue that this selective  relief might put other operators at a financial disadvantage and distort market competition. As  a result, these companies are advocating for equitable policy treatment to ensure fairness  across the sector. 

Background of the AGR Dispute 

In September 2021, the government allowed telecom operators to defer AGR payments for  four years, extending up to FY26. While this measure offered temporary relief, interest  continued to accumulate on the outstanding amounts during the deferment. The intent was to  give the industry some breathing room to recover from the financial strain that followed the  Supreme Court’s 2019 AGR ruling. 

More recently, in November 2025, the Supreme Court chose not to intervene in the  government’s decision to provide additional relief to Vodafone Idea, acknowledging the  company’s precarious financial situation. The court recognised the government’s authority to  implement policies aimed at maintaining competition in the telecom sector, while also noting  that such relief could lead to similar requests from other operators. 

What Lies Ahead 

Legal experts suggest that Airtel and the Tata Group may seek judicial intervention for  comparable relief; however, the outcome remains uncertain. The Supreme Court has  previously indicated that AGR relief is primarily a matter of government policy rather than  just an issue of equitable treatment. 

Analysts also highlight that Vodafone Idea’s circumstances are markedly different from those  of its competitors. The company continues to grapple with severe financial difficulties, while  Bharti Airtel has significantly improved its standing since the AGR verdict. Airtel has  returned to profitability, raised capital, expanded its network, and currently holds nearly 40  per cent market share in India’s telecom sector.

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