DoT asks Supreme Court to allow telecom companies 20-year period to pay AGR dues
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AGR includes rental receipts, dividend income and income from any other-activity arising out of the telecom licence the company has. Vodafone Idea is staring at dues worth over Rs 50,000 crore.
The Department of Telecommunications (DoT) on Monday moved the Supreme Court (SC) in the adjusted gross revenue (AGR) case, seeking staggered payment over 20 years by telecom companies. Telecom companies will be charged an 8 per cent interest on the staggered payments, a report said.
This payment mechanism would give the cash-strapped Vodafone Idea a fighting chance to survive. Reports say Vodafone Idea on Monday made an additional payment of Rs 3,354 crore towards AGR to the DoT. With this, Vodafone Idea had paid Rs 6,854 to the government.
The DoT said the formula for the recovery dues was created after detailed deliberations by the government and the Cabinet. The DoT has sought the apex court's approval for the formula.
The DoT had earlier said it would reassess the documents submitted by Bharti Airtel, Vodafone Idea, and Tata Teleservices, as part of the companies’ self-assessment of AGR dues.
AGR includes rental receipts, dividend income and income from any other-activity arising out of the telecom licence the company has. Vodafone Idea is staring at dues worth over Rs 50,000 crore.