BSNL Seeks Waiver of Rs 4,990 crore AGR Dues

The public-sector telecom player Bharat Sanchar Nigam (BSNL) has sought the Department of Telecommunications (DoT) intervention to waive off the Rs 4,990 crore Adjusted Gross Revenue (AGR) dues through an equity infusion route. According to reports, BSNL has to pay a license fee of Rs 2.099 crore and spectrum usage charge (SUC) worth Rs 2,890 crore to the DoT, following the Supreme Court’s October 2019 verdict that mandates telecom service providers, as well as other entities having a telecom license, to pay dues on account of AGR calculated on overall business.

According to reports, the state-run telecom carrier sent a letter to the telecom secretary on 13 December asking to bring in reprieve on account of AGR outgo but the department is yet to take any decision. The fourth-largest operator has posted a net loss of Rs 13,804 crore in FY 2019. It may be recalled that in October, the Prime Minister Narendra Modi-led Cabinet had approved Rs 70,000 crore for the revival of the two ailing public-sector telecom companies, BSNL and Mahanagar Telephone Nigam Limited (MTNL).

While the apex court asked the companies to pay their outstanding within three months, private telcos such as Vodafone Idea, Bharti Airtel and Tata Teleservices have filed a review petition seeking waivers on interest and penalty as well as interest on penalty. Other state-owned firms such as Delhi Metro Rail Corporation (DMRC), PowerGrid, Oil India and GAIL are also looking at seeking review of the order.