AGR dues: Govt is effectively conscious of implications if aid not offered to telcos, says COAI


New Delhi: Business physique COAI on Friday mentioned the federal government is effectively conscious of implications of leaving the pressured telecom sector and not using a aid package deal, because it urged policymakers to make use of “tools” obtainable to seek out acceptable options expeditiously.

“The industry is in urgent need of relief measures, and we urge the government to come up with appropriate solutions expeditiously and resolve the matter,” Mobile Operators’ Affiliation of India (COAI) Director Normal Rajan Mathews mentioned.

On Wednesday, the apex courtroom rejected the telcos’ self-assessed adjusted gross income (AGR) dues and ordered them to pay the principal along with curiosity and penalties.

 AGR dues: Govt is well aware of implications if relief not provided to telcos, says COAI

Representational picture. Reuters

It said that non-payment of dues would tantamount to contempt of courtroom.

“The government can exercise the tools that are available and move forward on that basis,” Mathews mentioned.

Telecom firms equivalent to Bharti Airtel, Vodafone Thought and Tata are in a bind as their mixed self-assessment of dues to the federal government are a whopping Rs 82,300 crore wanting what the telecom division calculated after the Supreme Court docket’s ruling on AGR.

The apex courtroom has lashed out on the telcos for making an attempt to reopen the dues they owed to the federal government by the self-assessment train.

A bench of Justices Arun Mishra, S A Nazeer and M R Shah refused to take up the Centre’s plea for permitting telecom firms to pay AGR dues in 20 years, saying the applying will likely be taken up after two weeks.

“The timeframe of 20 years is unreasonable. The telecom companies have to clear all dues mentioned in the judgment,” the bench mentioned including that it had settled all AGR dues after listening to telecom firms and the federal government then had fought tooth and nail for pursuits and penalties.

The Division of Telecommunications (DoT), in line with its personal submission to the apex courtroom just lately looking for aid in cost tenure, has put dues of the three firms — Bharti Airtel, Vodafone Thought and Tata Group — at Rs 1.19 lakh crore.

The dues estimated by DoT for Bharti Airtel and Telnor stood at Rs 43,980 crore, whereas that of Vodafone Thought was Rs58,254 crore, and Tata Group of firms at Rs 16,798 crore outlined underneath “total demand of DoT incorporating CAG and special audit as on October 2019”.

In opposition to this, Bharti group has calculated its dues at Rs 13,004 crore, Vodafone Thought at Rs 21,533 crore and Tata group of firms at Rs 2,197 crore.

In all, AGR dues calculated by the federal government for 16 entities add as much as Rs 1.69 lakh crore, whereas telcos’ self-assessment locations their dues at a mere Rs 37,176 crore.

These dues arose after the Supreme Court docket, in October final 12 months, upheld the federal government’s place on together with income from non-core companies in calculating the annual AGR of telecom firms, a share of which is paid as licence and spectrum price to the exchequer.


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