Telecom operator Bharti Airtel on Thursday said it has opted to defer the payment of AGR dues for FY 2018-19 by four years, which is not tabulated in the Supreme Court order.
It has retained the right to prepay the installment amount and will not avail the option of converting the interest payable amount into equity.
Company sources said the outstanding amount is around Rs. 3,000 crore for additional years.
“We would like to inform you that the company has informed DOT (Department of Telecom) That the company will avail the option of deferring the payment of AGR (Adjusted Gross Revenue) till FY 2018-19, which is not tabulated in the Hon’ble Supreme Court order by four years (effective from FY 2021-22). (FY 2024-25) while retaining the right to pre-pay the installment amount,” Bharti Airtel said in a regulatory filing.
The company also clarified that it “will not exercise the option to convert the interest earned under the aforesaid option into equity”.
Airtel said the DoT had offered the option of a four-year moratorium (applicable from FY 2021-22 to FY 2024-25) for AGR dues till FY 2018-19, a Supreme Court ruling relating to statutory dues Orders are not tabulated. To convert the interest payable amount into equity.
The government calculates its share of revenue from telecom operators on the basis of their AGR, which they are believed to have earned from the sale of services.
Last week’s debt-ridden telecom operator Vodafone Idea (VIL) It decided to defer the payment of additional AGR dues of Rs. 8,837 crore in a period of four years.
In a filing on June 22, the company said that DoT on June 15 raised the demand for AGR for additional two financial years after 2016-17, which were not covered under the Supreme Court order on statutory dues.
VIL had mentioned that its board of directors “has approved the exercise of the option of deferring the AGR dues with immediate effect for a period of four years, as per the said DoT letter”.
“The outstanding amount relating to AGR as stated in the said DoT letter is Rs 8,837 crore, which is subject to revision on account of settlement of various representations,” it said.
telecommunications Service providers had a shot at approving a blockbuster relief package with the government last year that includes a four-year break for companies from paying statutory dues, permission to share scarce airwaves, change in the definition of revenue that would be required to be paid. The levy is paid on and 100% foreign investment through the automatic route.
As per the official data, telecom operators will have to pay Rs. 1.65 lakh crore to the government in adjusted gross revenue till the financial year 2018-19.
The latest calculation shows that the total AGR liability on Bharti Airtel stands at Rs. 31,280 crore, Vodafone Idea Rs. 59,230 crore, Tata Group Rupee. 12,930 crore, Reliance Jio Rupee. 630 crores, BSNL Rupee. 16,220 crore and MTNL 5,010 crore till the financial year 2018-19.
Most of the telecom operators have made partial payment of the AGR demand raised till the financial year 2016-17.
Bharti Airtel had an outstanding of Rs. 25,970 crore, VIL Rs. 50,400 crore, Tata group companies Rs. 12,600 crore, BSNL Rs. 5,840 crore and MTNL Rs. 4,350 crore till March 31, 2021.
Demand was also raised for some telecom companies like Sistema Shyam, Etisalat DB Telecom, S Tel, Reliance Communications which have closed their telecom services business.