Sunil Mittal-led Bharti Airtel surprised telecom sector watchers by making full and final adjusted gross revenue (AGR)-linked dues of Rs 18,000 crore to the Department of Telecommunications (DoT) after its self-assessment exercise.
The government calculation of Airtel’s AGR-linked dues, estimated at Rs 35,500 crore, is almost double of what the telco has handed over.
Though, the deliberations over Bharti Airtel’s assessment will continue, its payment decision announcement may alter the ongoing narrative related to AGR and the hefty bill of Rs 1.47 trillion slapped on the telecom industry.
Meanwhile, Bharti Airtel explained that it had carried out self-assessment from FY 2006-07 onwards up to December 31, 2019, and interest thereon up to February 29, 2020, in line with the AGR judgment.
This announcement came a day after a meeting of the Digital Communications Commission (DCC), the apex decision-making body for the telecom sector, remained inconclusive on providing relief to the financially stressed industry.
Earlier it paid Rs 10,000 crore to the DoT on February 17 in compliance with the Supreme Court judgment. Last Saturday, the telco paid an additional amount of Rs 3,004 crore towards the full and final amounts due.
In addition to the aforesaid amounts paid basis our self-assessment, we have also deposited an additional amount of Rs 5,000 crore, as an ad-hoc payment (subject to subsequent refund/adjustment) to cover differences, if any, arising from the reconciliation exercise with the DoT,” Airtel said in the BSE filing.
Tata Teleservices had paid Rs 2,197 crore as its AGR dues to the DoT, saying it was the company’s full and final payment. The government had estimated around Rs 14,000 crore as Tata Teleservice’s AGR dues.
While, these two companies made their AGR payments after self-assessment, Vodafone Idea has made a payment of only Rs 3,500 crore so far against AGR dues estimated at more than Rs 50,000 crore.
The Supreme Court had on October 24, 2019, upheld the DoT definition of AGR, asking the telecom industry to pay up pending licence fee and spectrum charge dues along with penalties and interest within three months.
Subsequently, the court had dismissed a review petition by the telcos. When Bharti Airtel and Vodafone Idea filed a modification plea for extending the duration of payments, the court asked them to clear their dues before the next date of hearing, scheduled for March 17.
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.