Airtel, Tata Firms Line Up For Vodafone Idea-Like AGR Relief

Just weeks after the Union Cabinet allowed Vodafone Idea to delay payment of its adjusted gross revenue (AGR) dues until 2035, other telecom operators facing legacy penalties are reportedly seeking similar relief. Companies including Bharti Airtel, Tata Teleservices and Tata Teleservices Maharashtra are planning coordinated engagement with the government, the Economic Times (ET) reported on Friday.

The report, citing industry executives, said the three companies are exploring multiple routes, including a collective approach to the government. Executives also indicated that payments would not commence unless there is uniform treatment across operators.

The development comes after Vodafone Idea said on January 9 that its AGR dues for the period from financial year 2006-07 (FY07) to FY19 would remain frozen as of December 31, 2025. The Department of Telecom has informed the company that its AGR liabilities, amounting to around ₹87,695 crore, will be reassessed by a Cabinet-formed committee, with repayments likely to begin in FY35.

Tata Teleservices (TTSL) and Tata Teleservices Maharashtra (TTML) together carry the third-highest AGR dues at ₹19,259 crore, while Bharti Airtel’s outstanding liability stands at ₹48,103 crore, the ET report noted. Repayments for both operators are scheduled to begin in March. The companies have reportedly chosen to suspend payments for now, arguing that obligations should resume only once a level playing field is ensured for all affected telecom players.

In September 2021, the government announced a four-year moratorium on AGR payments, allowing telecom firms to defer dues until FY26 while protecting the net present value of outstanding amounts. During this period, companies continued to pay compounded annual interest.

The moratorium ended in FY25, after which operators were required to repay the dues in six annual instalments by the end of FY26. The relief package was aimed at easing financial stress and enabling operators to stabilise operations and invest in network expansion.

However, in November 2025, citing Vodafone Idea’s fragile financial position and the risk of its exit from the market, the Supreme Court chose not to intervene in the government’s telecom relief policy decisions.

This effectively gave the Centre flexibility to extend additional support to Vi and review its payment obligations. This cleared the way for the extended payment deferral subsequently granted to Vi.

Industry executives have reportedly warned that selective relief could disrupt the competitive balance and place additional pressure on operators required to restart AGR payments from FY26, underscoring the need for a uniform and predictable policy approach.