Telecom Operators Including Vodafone-Idea, Airtel May Get Some Relief on Paying $13 Billion Dues if They Commit to Pay Some Amount Immediately: Report
Union government is open to hear wear wireless carriers’ suggestions to help ease payment of Rs 1.02 lakh crore (USD 13 billion) in overdue fees after AGR blow, only if the companies commit to pay some amount immediately.
Mumbai, January 17: A day after the Supreme Court rejected the pleas by Vodafone Idea, Bharati Airtel and Tata Teleservices to review the October 24 verdict, reports arrived that the Union government is open to hear wear wireless carriers’ suggestions to help ease payment of Rs 1.02 lakh crore (USD 13 billion) in overdue fees. However, the change in government decision can only take place provided the companies commit to pay some amount immediately.
According to a report, published in the livemint, the Union Telecom Ministry might consider the telcos' suggestions to help ease payment. A government official even claimed that the ministry might consider an independent panel which might strip out interest from the dues or paying the amount in tranches. These suggestions were quashed by the Supreme Court on Thursday. Sunil Mittal of Bharti Airtel Rings Alarm Bell: 'Telecom Industry Passing Through Its Worst Phase in 25 Years, Needs Immediate Government Help'.
As per the considerations, the telcos want government to rethink on the payment of additional licence fees, spectrum usage charges (SUC) and penalties and interest which earlier widened the definition of adjusted gross revenue (AGR). If the pleas are considered by the government, a sudden boost in the revenue collection is what being expected amid economic crisis.
Earlier on Thursday, while dismissing plea of telcos the Supreme Court Judge Arun Mishra had said, "Having perused the review petitions and the connected papers with meticulous care, we do not find any justifiable reason to entertain the review petitions. The review petitions are, accordingly, dismissed." It is to be known that the telcos had not challenged that entire October 24 order, but sought a limited review of ruling with a hope of softening of the AGR blow. Vodafone-Idea Chairman Kumar Mangalam Birla Warns Centre of Business Closure in India, Says 'Will Have to Shut Shop if No Govt Relief'.
Looking at the AGR blow, Vodafone-Idea combine has been asked to pay Rs 53,039 crore, While Bharti Airtel has been ordered to pay Rs 35,586 crore. Reliance Communications has a debt of Rs 16,456 crore to clear, while Tata Teleservices needs to pay Rs 14,000 crore. MTNL and BSNL need to pay Rs 4,635 crore. In India, by November 2019, Jio had 36.99 crore mobile subscribers, while Vodafone-Idea had 33.63 crore users. Bharti Airtel has 32.73 crore subscribers.
(The above story first appeared on LatestLY on Jan 17, 2020 04:37 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).