The government has rejected Airtel and Tata Teleservices’ request for Vodafone Idea-like AGR relief, signalling no further concessions on dues.
Both companies are now required to pay around ₹10,000 crore in AGR dues by March 31, with no deferment window granted.
Vi earlier received a five-year moratorium on AGR payments worth around ₹87,695 crore, with repayments deferred to period between FY32 and FY41.
The Department of Telecommunications (DoT) has made clear that Bharti Airtel and Tata Teleservices will have to pay nearly ₹10,000 crore in adjusted gross revenue (AGR) dues to the government by March 31, with no relief on offer similar to what was extended to Vodafone Idea (Vi).
According to a report by The Economic Times, Airtel is required to pay over ₹5,000 crore while Tata Teleservices has to deposit more than ₹4,000 crore. The final amounts are expected to be higher once accrued interest is factored in.
2 March 2026
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The DoT has said that both companies must deposit their instalments as mandated by the Supreme Court. Failure to do so would amount to contempt of court.
Why Vodafone Idea Got Special Treatment
The issue came to the fore after the government, in December, approved a special relief package for Vodafone Idea. Under the package, Vi received a five-year moratorium on AGR payments worth approximately ₹87,695 crore, with repayments now deferred to the period between FY32 and FY41. Outstanding dues for FY18 and FY19 are to be cleared by the company over the next five years.
The relief was granted given Vi's fragile financial condition and the risk of its potential collapse. In November 2025, the Supreme Court declined to interfere with the government's policy decisions on telecom relief, effectively allowing the Centre to extend further support to Vi and reassess its dues. The government currently holds the largest stake in Vi at 49%.
No Relief for Others, DoT Clarifies
Airtel had written to the DoT seeking a reassessment of its AGR dues along the same lines as Vi. However, the DoT turned down the request, stating that the relief was specific to Vi. If any other company seeks similar relief, it has to approach the Supreme Court directly. So far, no company has done so.
The DoT's stance is partly shaped by Airtel's vastly different financial position. Unlike Vi, Airtel has recovered strongly since the AGR setback in 2019. The company has returned to profitability, raised external funding, invested in expanding its network and now holds a 40% market share.
It generated an operating free cash flow of ₹55,300 crore in FY2024-25. These factors also led the DoT to reject Airtel's earlier request to convert a portion of its AGR dues into government equity, a concession that had been granted to Vi.
As of December 31, 2025, Airtel's total AGR dues stood at ₹51,091 crore, according to the Ministry of Communications. The Tata Group, comprising Tata Teleservices and Tata Tele Maharashtra, owed ₹20,426 crore. Against these amounts, Airtel has so far paid approximately ₹19,000 crore, while Tata Group has paid ₹4,197 crore.
What is AGR Payment Schedule
The current payment schedule follows a four-year moratorium granted to telecom companies in September 2021, which was intended to give operators financial breathing room to stabilise and invest in networks. That moratorium ended in FY2024-25, after which companies were required to begin six annual instalments before the close of FY2025-26.
Meanwhile, a DoT committee is currently re-examining Vi's AGR dues. The exercise is expected to conclude soon, and the final amount payable by Vi is likely to be significantly lower. No such reassessment is available to other telecom operators.
