New Delhi, May 6 -- Bharti Airtel's proposal to convert Rs.40,000 crore of its adjusted gross revenue (AGR) dues into government equity has been handed for evaluation to the department of investment and public asset management (DIPAM), according to two officials aware of the matter.

The DIPAM, which is assessing the proposal, is weighing the implications of a potential approval, especially as Airtel has demonstrated strong financial performance and its stock, too, has been on a tear over the past five years, the first official cited above said on the condition of anonymity.

The second official said that the Centre is also weighing the broader implications of setting a precedent to other financially sound corporations-even beyond telecom...