Indian telecom majors Bharti Airtel, Vodafone-Idea, and Tata Group on Monday deposited $1.4 billion, $350 million and $307 million respectively towards the clearance of AGRs-- that serve as a base for most levies including licence fees and spectrum charges, calculated as a specific percentage of the total amount; media reports quoted a government official as saying. The money has been paid as a first instalment of the total due.
The money was paid to the Indian Department of Telecom (DoT). With this, the government has received 10 per cent of the total due amount.
Stretched by review petitions and extending deadlines, last week the Supreme Court of India came down heavily on telecom operators for adopting delay tactics and avoiding the payment of government dues.
The players are working towards clearing their balance due by 17 March – which is the date given by the court for the next instalment.
In October last year, the Supreme Court of India had instructed telecom players in the country to pay the government their share of dues amounting to over $13 billion, which accumulated during a 14-year-long period, under the widened definition of the AGR.
Fearing hefty losses, Indian telecom giants – Bharti Airtel and Vodafone-Idea had submitted a petition to the Supreme Court to consider a review of its verdict on the AGR. However, in January 2020, the apex court dismissed their plea.
The crisis in the Indian telecom sector deepened with Vodafone-Idea, which has over 422 million users in India, posting its first highest-ever loss of $7.2 billion in the April-September quarter of 2019.
Similarly, Bharti Airtel, which provides services to 141.66 million customers, posted a loss of $3.2 billion in the same quarter.
While Vodafone-Idea needs to pay dues worth $7.46 billion and Airtel's dues amount to $5 billion. The court has also asked the companies why they shouldn't be slapped with a contempt notice.
