Why Airtel-Tata Tele merger is still to get approval

NEW DELHI: Airtel and Tata Tele have failed to receive a nod from the government for their much-awaited merger. Clearance will now spill over into the next year, as the companies will have to clear AGR dues — as mandated by the Supreme Court — before joining hands.
Sources said the companies are now working overtime to do self-assessment of their AGR dues, as demanded by the department of telecom (DoT), while also planning to petition the government to approve the merger as early as possible. “The merger was originally slated to be completed by July this year. However, due to procedural aspects with DoT earlier and now due to AGR dues mandated by the top court, we have failed to complete the process,” a senior functionary in one of the companies told TOI.
With DoT guidelines stipulating clearance of all dues before getting into any merger, the companies will now have to clear AGR dues. While dues for Airtel stand at nearly Rs 35,000 crore, Tata Tele needs to pay around Rs 13,000 crore. The telecom companies have sought a reassessment of the Supreme Court order in a review petition. While doing so, they are also separately preparing their self-assessment on dues that need to be raised against them.