Telecom operator Bharti Airtel on Thursday said it will defer the payment of the AGR (Adjusted Gross Revenue) dues up to FY 2018-19 which are not tabulated in the Supreme Court order, by up to four years.

However, the company has retained the right to pre-pay installment amounts and would not avail the option of conversion of the interest dues that would accrue into equity.

Sources at the company said the amount of dues add up to about Rs 3,000 crore for the additional years.

Also Read:

Google cleared to buy 1.28% stake in Bharti Airtel

"We wish to inform you that the company has informed to DoT (Department of Telecom) that the company shall avail the option to defer the payment of the AGR (Adjusted Gross Revenue) dues up to FY 2018-19 which are not tabulated in the Hon'ble Supreme Court order, up to four years (applicable from FY 2021-22 to FY 2024-25) while retaining the right to pre-pay the installment amounts," Bharti Airtel said in a regulatory filing.

Airtel said DoT had offered the option of a four-year moratorium (applicable from FY 2021-22 to FY 2024-25) for AGR dues up to FY 2018-19 which are not tabulated in the Supreme Court order pertaining to statutory dues as well as for the conversion of the interest dues that accrue into equity.

The government calculates its share of the revenue from telecom operators based on their AGR, which is considered to have been earned by them from the sale of services. Last week, debt-ridden telecom operator Vodafone Idea Ltd (VIL) decided to defer payment of additional AGR dues of Rs 8,837 crore by a period of four years.

Also Read: Explained: Private 5G networks and why telecom operators don't like them

In a filing on June 22, the company said DoT, on June 15, raised AGR demand for additional two financial years beyond 2016-17, which were not covered under the Supreme Court order on the statutory dues. VIL had mentioned that its board of directors "has approved the exercise of the option of deferment of the AGR related dues by a period of four years with immediate effect, in accordance with the said DoT letter".

"The amount of the AGR-related dues as stated in the said DoT letter is Rs 8,837 crore, which is subject to revision on account of disposal of various representations," it had said.

Telecom service providers had got a shot in the arm with the government last year approving a blockbuster relief package that included a four-year break for companies from paying statutory dues, permission to share scarce airwaves, change in the definition of revenue on which levies are paid and 100 percent foreign investment through the automatic route.

Also Read: 5G Auction: Telcos likely to buy spectrum worth up to Rs 1 lakh crore

According to official data, telecom operators owe over Rs 1.65 lakh crore to the government in adjusted gross revenue up to the financial year 2018-19.

The fresh calculation shows total AGR liability on Bharti Airtel is Rs 31,280 crore, Vodafone Idea Rs 59,236.63 crore, Tata Group Rs 12,931.63 crore, Reliance Jio Rs 631 crore, BSNL Rs 16,224 crore and MTNL Rs 5,009.1 crore up to the financial year 2018-19.

Most of the telecom operators have made part payment of AGR demand raised till the fiscal year 2016-17. Bharti Airtel had an outstanding of Rs 25,976 crore, VIL Rs 50,399.63 crore, Tata Group companies 12,600.63 crore, BSNL Rs 5,835.85 crore, and MTNL Rs 4,352.09 crore as of March 31, 2021.

The demand was also raised for some of the telecom companies like Sistema Shyam, Etisalat DB Telecom, S Tel, Reliance Communications etc that have shut down their telecom services business.

Shares of Bharti Airtel ended at Rs 684.40, down by Rs 3.10, or 0.45 percent on the BSE.

First Published:Jun 30, 2022 11:29 PM IST