Bharti Airtel surged 3 percent Tuesday after the telecom company informed the Department of Telecom (DoT) of availing the four-year moratorium on adjusted gross revenue (AGR) and spectrum dues.

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The company "has confirmed to avail the following options; a) deferment of the payment of spectrum auction instalments due up to four years; and b) deferment of AGR related dues by a period of four years with immediate effect," Airtel said in a regulatory filing.

The stock rose to an intraday high of Rs 709 Tuesday, surging nearly 3 percent on the Bombay Stock Exchange. At 15:00, the stock was up over half a percent from its precious close to Rs 695.

Earlier in September, the government had approved a relief package for the telecom sector. The package included a four-year moratorium (a temporary prohibition) on AGR and spectrum dues. However, companies opting for the moratorium have to pay interest on the amount availed under the benefit. After Vodafone Idea, Airtel is the second company to avail of this benefit.

The confirmation came a week after DoT wrote to all the private telcos -- Reliance Jio, Vodafone Idea, and Bharti Airtel -- to decide whether they want to opt for a moratorium.

Earlier in October, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) had told DoT it won't enforce the penalties to the tune of Rs 3,000 crores on the telecom majors Airtel and Vodafone Idea in the points of interconnection case until the tribunal's next hearing. The next hearing is expected to take place on Tuesday, October 26.

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First Published:Oct 26, 2021 3:22 PM IST