The definition of adjusted gross revenue (AGR) has been such an argumentative issue so far, owing to its huge financial inferences for both telecom companies and the government. Recently telecom operator Bharti Airtel deposited Rs 10,000 crore with the Department of Telecommunications (DoT) as part of its AGR dues. Vodafone Idea Ltd, meanwhile, paid Rs 2,500 crore as part payment of dues to the DoT.

The DoT calculated that Bharti Airtel, Vodafone Idea and others owe as much as Rs 1.47 lakh crore in past dues in total, including penalties and interest, while non-telecom firms, who had taken some licence from it, owed another Rs 2.65 lakh crore.

Here are key things to know about the AGR issue:

What is AGR?

AGR is a fee-sharing mechanism between government and the telcos who shifted to 'revenue-sharing fee' model in 1999, from the 'fixed license fee' model. In this course, telcos are supposed to share a percentage of AGR with the government.

What is the dispute on?

The dispute between the DoT and telecom operators is mainly on the definition of this AGR. The DoT says that AGR includes all revenues from both telecom and non-telecom services. The operators, on the other hand, claims that AGR should include just the revenue accrued from core services. On October 24, 2019, the Supreme Court widened the definition of AGR to include DoT's point of view.

The government and the telecom companies were locked in a legal battle over the definition of AGR for 14 years.

Here's a quick recap of what has happened on AGR issue so far:

February 19

According to sources, government relief in the AGR matter, if any, will be provided to all telecom companies and not just Vodafone-Idea.

February 18

Vodafone Idea chairman Kumar Mangalam Birla held a meeting with telecom secretary Anshu Prakash amid concerns that the DoT may take coercive action against the telcos for failing to pay AGR dues. After the meeting, Birla said he "cannot say anything at the moment."

February 17

Vodafone Idea paid Rs 2,500 crore to the DoT and promised to pay another Rs 1,000 crore before the end of the week. The company has to pay Rs 56,709 crore to the government in total. The Supreme Court, however, rejected this proposal of Vodafone Idea, while also refusing its plea that no coercive action be taken against it.

Bharti Airtel said it paid Rs 10,000 crore to the telecom department towards statutory dues. The company said it will make payment of balance amount after self-assessment exercise.

Tata group firm TTSL, meanwhile, paid Rs 2,197 crore to the government to settle outstanding arising from the Supreme Court ruling on AGR dues.

The telecom players have been awaiting further instructions from the government on if there is any kind of relief that will be provided either by way of a timeline of payments or by allowing the firms to pay only the principal amount.

February 15

RBI Governor Shaktikanta Das said the central bank will have internal discussions in case there are any issues arising out of the Supreme Court order regarding AGR dues to be paid by telecom companies.

February 14

The telecom department withdrew its order that asked for no coercive action against telecom companies defaulting on statutory dues payment. The department said it is mulling penal action against top executives of Bharti Airtel, Vodafone-Idea and other telecom firms for failing to pay in time the AGR dues as directed by the Supreme Court. With the apex court's rap, the government came down heavily on telcos.

Airtel responded to the DoT order by offering to pay Rs 10,000 crore by February 20 and the remaining before March 17.

February 13

Vodafone Idea reported widening of losses to Rs 6,438.8 crore in the third quarter of 2019-20 against Rs 5,004.6 crore a year ago, as the AGR-hit telco continued to sound out warnings on "material uncertainty" casting "significant doubt" on its ability to continue as going concern.

January 23

The government asked the DoT not to take any coercive action against telecom companies for non-payment of AGR dues until further court orders.

Reliance Jio, meanwhile, paid Rs 195 crore to the telecom department. This included advance money that the company paid for the month of January 2020.

January 16

Supreme Court said it will consider review pleas filed by telecom firms on AGR verdict.

January 15

To meet the AGR dues, Airtel announced the allotment of 32.35 crore equity shares to eligible buyers at an issue price of Rs 445 apiece as part of $2 billion qualified institutional placement.

January 8

Telecom companies seek an urgent listing and hearing of the review petitions against the Supreme Court’s (SC) additional gross revenues judgement.

December 10

DoT asked all telecom licence holders, including non-telecom companies, to speed up the process of self-assessment of AGR-based dues and their payments.

November 14

DoT issued a notice to telecom operators to pay their revenue share dues within three months as directed by the Supreme Court.

October 30

The government formed a panel to look into financial woes of telcos after the apex court's AGR blow.

October 24

The top court rejected the telecom companies' definition of AGR. The government and the telecom companies were locked in a legal battle in the 14-year-old case over the definition of AGR, on the basis of which the telecom department calculates levies payable by companies. The apex court rejected all other submissions of the telecom companies. It added that the service providers would have to pay penalties and interests to the DoT.

(With inputs from agencies)

First Published:Feb 19, 2020 5:00 PM IST