AGR dues: Vodafone Concept Chairman Kumar Mangalam Birla meets telecom secretary Anshu Prakash
New Delhi: Amid talks of the federal government mulling encashing of financial institution assure over default in fee of dues, Vodafone Concept Chairman Kumar Mangalam Birla on Tuesday met Telecom Secretary Anshu Prakash as he regarded for choices to maintain the corporate afloat.
After the assembly, Birla mentioned he “cannot say anything at the moment.”
Birla, who met the telecom secretary for over an hour, was accompanied by Ravinder Takkar, MD & CEO of Vodafone Concept.
He refused to answer queries on whether or not or not Vodafone Concept Ltd (VIL) would default on fee of AGR dues or if the corporate may head in direction of insolvency.
KM Birla says ‘Can’t say something at this level’ after assembly with Telecom Secretary on AGR points pic.twitter.com/eDvhsswhRi
— CNBC-TV18 (@CNBCTV18Reside) February 18, 2020
Vodafone Concept on Monday paid Rs 2,500 crore to DoT and promised to pay one other Rs 1,000 crore earlier than the tip of the week.
However the quantity paid for now’s lower than 5 % of the dues that the DoT estimates the corporate owes to the federal government following a Supreme Courtroom ruling that requested for together with non-telecom revenues of telcos in computing statutory funds corresponding to licence charge and spectrum prices.
The Supreme Courtroom on Monday refused to cease DoT from taking any coercive steps for restoration of dues from Vodafone Concept.
In December, Birla mentioned Vodafone Concept might need to shut if there isn’t a reduction on statutory dues. “If we are not getting anything, then I think it is the end of the story for Vodafone Idea,” Birla had mentioned. “It does not make sense to put good money after bad… We will shut shop.”
After a Supreme Courtroom rap on 14 February for lacking the fee deadline, high telecom corporations Bharti Airtel, Vodafone Concept and Tata Teleservices on Monday scrambled to pay part of the excellent dues.
Whereas Vodafone Concept put in Rs 2,500 crore and promised one other Rs 1,000 crore later this week, Airtel paid Rs 10,000 crore.
Airtel mentioned it’ll clear the remaining dues earlier than the following date of listening to on March 17 however Vodafone Concept has up to now not offered a transparent deadline for making all funds.
Tata Teleservices paid Rs 2,197 crore, the whole excellent it believes to have arisen after the October ruling of the apex court docket for calculating dues after including non-telecom revenues.
“Tata Teleservices and Tata Teleservices (Maharashtra) Ltd have made a payment of Rs 2,197 crore to the DoT towards licence fee and spectrum usage charges,” the corporate mentioned in an announcement on Monday.
The fee is to settle all its AGR excellent.
“TTSL and TTML have also submitted to DoT the details of calculations in support of the payment,” it had mentioned.
The Division of Telecommunications (DoT) — which final week drew flak for ordering no coercive motion even after telcos missed the 23 January fee deadline set by the Supreme Courtroom — is mulling the choice of encashing financial institution ensures given by corporations after they bought telecom licences, as not one of the telcos have paid the complete quantity.
Encashing of the financial institution ensures might sound the demise knell for corporations corresponding to Vodafone Concept which has been struggling to garner the dues.
A monetary financial institution assure is the same as two quarters of licence charge and different dues. This quantity may very well be within the vary of Rs 5,000 crore every for Airtel and Vodafone Concept.
The Supreme Courtroom final week rejected a plea by corporations corresponding to Bharti Airtel and Vodafone Concept for extension within the fee schedule and requested them to deposit an estimated Rs 1.47 lakh crore in previous dues for spectrum and licences. It threatened to provoke contempt proceedings in opposition to high executives of those corporations for non-payment.
Some telecom corporations are already scuffling with mounting losses and debt and the extra legal responsibility has raised issues of them defaulting on present loans.
Of the estimated dues that embody curiosity and penalty for late funds, Airtel and Vodafone Concept owe about 60 %.
Discover newest and upcoming tech devices on-line on Tech2 Gadgets. Get know-how information, devices evaluations & rankings. Common devices together with laptop computer, pill and cellular specs, options, costs, comparability.