Speed up AGR calculation, show proof: DoT tells telcos
NEWDELHI: The department of telecommunications (DoT) has asked all telecom operators to speed up their self-assessment of adjusted gross revenue (AGR)-related dues and submit documents supporting their calculation, after Bharti Airtel, Tata Teleservices and Vodafone Idea made part payment of dues last week.
“The DoT has asked all private operators and public sector telecom companies to submit AGR self-assessment documents as soon as possible,” a person aware of the matter said on Monday, requesting anonymity. “The documents should justify their calculation of AGR,” the person said.
The Supreme Court had on February 14 pulled up telcos and government officials for failing to comply with its October 2019 verdict ordering telcos to pay up their dues to the government after a prolonged wrangle over the definition of AGR.
Vodafone Idea is the worst hit by the verdict and is thought to be on the brink of collapse. It paid ₹3,500 crore toward AGR dues after the failure of a last-ditch effort to earn a court reprieve last week.
The fresh demand from DoT comes just days after a series of meetings between Vodafone Idea chairman Kumar Mangalam Birla and top government officials. Birla met telecom secretary Anshu Prakash on Tuesday and followed it up with a meeting with finance minister Nirmala Sitharaman on Wednesday.
“Several proposals are being discussed to provide the sector with immediate relief from the AGR dues. One of them involves setting up a fund that will lend money to telcos at a concessional rate to repay their dues,” a second person aware of the matter said requesting anonymity.
The government or an entity owned by it could provide the seed capital to get the fund going, this person said.
A proposal to give a sovereign guarantee for funds to be raised by the telecom companies has also been considered, the second person said. However, there may be reservations because of the political compulsions that a sovereign guarantee entails and the controversy it could fuel over being given to private companies. “A sovereign guarantee for money to be raised by telecom companies would have been among the simplest and the quickest exercises,” this person said.
“The government is also looking at the option of a revised payment plan that will enable companies to defer payment of penalties and interests in future. In this case, the immediate liability of telcos would be limited to the principal amount. A combination of these measures is being considered and an appropriate call on this will be taken soon,” the second person said.
An email query sent to DoT was unanswered till press time.