NEW DELHI: The total debt of India’s four major telecom operators as of FY24 stood at a staggering Rs4.09 lakh crore, with Vodafone Idea (Vi) accounting for more than half of this, at Rs2.07 lakh crore (Rs2.07tr).
While Bharti Airtel’s debt stood at Rs1.25 lakh crore, Jio Infocomm’s at Rs52,740 crore, that of BSNL was at Rs23,297 crore as of FY24.  This debt level is heavily influenced by the Adjusted Gross Revenue (AGR) dispute, which imposed massive liabilities on these companies, especially Vodafone Idea.
The AGR issue stemmed from a Supreme Court ruling in 2019 that expanded the definition of AGR to include non-core revenues, significantly increasing the dues owed by telecom firms.
Vi’s AGR dues alone, Rs58,000 crore, swelled to Rs70,320 crore by FY24 due to interest and penalties. Bharti Airtel and Jio also faced hefty AGR liabilities, contributing to their debt burdens. The Supreme Court recently dismissed curative petitions filed by these companies, leaving little room for relief​ on this count.
While Vodafone Ideacontinued to struggle financially, posting losses, battling for survival amid intense competition and heavy debt, Bharti Airtelrecorded a 23 per cent year-on-year jump in consolidated net profit to Rs2,626 crore, driven by tariff hikes and strong performance in its 4G user base.
BSNL gets govt support
Reliance Jio reported a 10.4 per cent year-on-year rise in net profit to Rs5,097 crore, benefiting from sustained subscriber growth and increased data usage​. The AGR burden, coupled with sectoral competition and high capital expenditures, has placed significant financial stress on operators, particularly Vodafone India (Vi).
On the other hand, BSNL has been supported by government revival packages that helped reduce its debt and achieve operating profits. BSNL’s debt, which stood at Rs40,400 crore in FY22, was significantly reduced to Rs28,092 crore, thanks to substantial government-supported revival packages and financial aid.
The first revival package in 2019, amounting to Rs69,000 crore, aimed to lower operating costs for BSNL and MTNL while addressing financial challenges. This was followed by a larger package in 2022 worth Rs1.64 lakh crore, focusing on fresh capital infusion, debt restructuring, and viability gap funding for rural telephony.
Additionally, the government approved the allocation of 4G and 5G spectrum to BSNL with an outlay of approximately Rs89,000 crore, enabling the state-run telecom operator to modernize its network and expand services.
