New Delhi, March 11: Prime Minister Narendra Modi government is most likely to announce a relief package for telecom companies as early as mid-April. The relief package which may include an extension of the timeframe to pay dues on adjusted gross revenue (AGR) which telecom companies owe to the government. The latest development is arriving days after Union Finance Minister Nirmala Sitharaman said that the central government is looking at the options and will take a decision on relief to telecom companies on AGR soon.

According to a report, published in the LiveMint, one of the sources said, "The contents of the package are being discussed at the highest levels. Some possible interventions could include a plan for staggered payments of AGR dues. The package will take a comprehensive view of the sector keeping in mind the ambitious roll out of 5G." Telecom Crisis: FM Nirmala Sitharaman Indicates Relief to Telcos on AGR Dues Soon, Says 'Concerned Department Will Do it'.

Apart from this, the person said that the government is also mulling opt for a mechanism with which cheap debt capital through a special purpose vehicle for enabling 5G auctions can be provided. Review of the base price for the spectrum is also being discussed by the Union government. However, the penalty and the interest amount imposed on telcos, which they owe in AGR dues, is unlikely to be reduced.

Based on the DoT’s definition of AGR, the Supreme Court on October 24 had order Telecos telecom firms to repay levies, as well as interest on the principal amount and the penalty. The Telcos would have to pay a principal amount for the 13-year period ended 31 March 2019 and interest up to February 2020.

Though the government's estimate state initial estimate for Vodafone Idea’s and Bharti Airtel’s dues by over Rs 50,000 crore and around Rs 35,000 crore respectively, firms' self-assessment claim their dues sharply lower at Rs 21,533 crore and Rs 18,004 crore. Vodafone-Idea has paid around Rs 3,500 crore, while Bharti Airtel has paid the entire amount of Rs 18,004 crore which it has self-assessed. Meanwhile, Reliance Jio has paid all its AGR dues of Rs 195 crore.

Earlier, Vodafone-Idea chairman Kumar Mangalam Birla had indicated that he might have to shut down if it doesn’t get any relief on its AGR dues. While, Airtel chief Sunil Bharti Mittal had said that it is worst phase of telecom sector in the countr. Both of them had met Sitharaman in February and requested her to take some to steps to resolve the issue.

(The above story first appeared on LatestLY on Mar 11, 2020 04:53 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).