Corporate Grapevine     

Published: May 15, 2025
Updated: May 15, 2025

Govt-telcos’ tussle over AGR – Part 2

India’s beleaguered telecom sector is once again knocking on the doors of the Supreme Court. Following the moves by Vodafone Idea and Bharti Airtel to seek a review of a previous apex court ruling on Adjusted Gross Revenue (AGR) dues, insiders now suggest that the Tata group may also join the fray. Tata Teleservices, long a loss-making venture, is saddled with AGR liabilities of Rs 20,000 crore. Vodafone Idea and Bharti Airtel face demands of Rs 30,000 crore and Rs 34,745 crore re spectively.

In a bid to placate the government and ease the financial strain, all three firms are reportedly prepared to offer equity stakes in lieu of cash payments — a gesture as much of desperation as of diplomacy.

The AGR dispute, which dates back over a decade, has seen operators and the Department of Telecommu nications locked in combat over what constitutes revenue. The Supreme Court’s earlier judgment siding with the government dealt a severe blow to the already debt-laden industry.

With tens of billions invested, jobs at stake and digital infrastructure on the line, the government now faces a familiar dilemma: uphold judicial finality or intervene to revive a sector it once championed. Either way, its response will shape the future of Indian telecommunications for years to come.