Won’t Avail Option Of Converting Interest On Dues To Equity: Airtel

In a regulatory filing on Friday, Bharti Airtel has informed the DoT about its decision

New Delhi: Telecom major Bharti Airtel will not opt for conversion of the interest on deferred spectrum and AGR dues into equity, under the reforms package, the company said on Friday in its regulatory filing. 

Airtel said it has informed the Department of Telecom (DoT) about its decision, according to PTI.

“... We wish to inform you that the company has confirmed to DoT (Department of Telecom) that it will not avail the option of conversion of the interest on deferred spectrum and AGR (Adjusted Gross Revenue) dues into equity,” Airtel said in a BSE filing. 

According to reports, as a part of the relief package for the telecom sector, Airtel had opted for the four-year moratorium on AGR and spectrum dues in October 2021. However, the telcos were also required to pay interest on these dues during the moratorium period.

The DoT had also issued a 90-day window to the companies to decide if they want to avail converting the interest amount pertaining to the moratorium period into equity.

Airtel, which had already paid Rs 18,004 crore in AGR-related dues to the DoT by March 31, 2021, is more than 10 per cent of its total statutory dues of over Rs 43,000 crore.

In its agrument, the DoT said that the AGR of the telecom companies included income from the sale of handsets, dividends from subsidiaries, besides other incomes. It contended that the companies had underreported their revenue and paid lower taxes and levies.

The verdict on 24 October, 2019, by the Supreme Court ended the 14-year-long conflict over the definition of AGR between the DoT and telecom firms.

At 1pm on Friday, Bharti Airtel shares were trading at Rs 704.80 apiece on the BSE, down 0.73 per cent.