Vodafone Idea writes to govt to seek relief on AGR issue

Indian telecom major Vodafone-Idea has written to the Telecom Ministry, Finance Ministry and  NITI Aayog to seek support from the government on payment of AGR dues. Till date, the company has paid Rs 3,500 crore as against Rs 56,709 crore It owes to the government as AGR dues.

CNBCTV18 has learnt that  Vodafone Idea has sought adjustment of GST credit worth Rs 8,000 crore against the AGR dues. The company has also sought a staggered payment schedule and moratorium of three years with a schedule to pay in 15 years with a simple interest of six percent for the balance payment of AGR.

On Wednesday, Finance Minister Nirmala Sitharaman stated that the government is looking into the AGR crisis. "Yes I have had a lot of meetings; the Department of Telecom is working on this; beyond that, it’s not appropriate for me to say anything," she said.

According to sources, the company told the government that the telecom sector is facing issues like high rate of taxation. It also demanded that the telecom licence fee should be brought down to three percent from the current eight percent.

Moreover, the company has sought rationalisation of Spectrum User Charge to one percent as against the current rate of three percent.

It has also sought immediate implementation of floor price to help telecom firms double their revenue.

Government officials dealing with the issue told CNBC-TV18 that telecom sector issues are being discussed at the highest level “The AGR issue does have an impact on the telecom sector, the government is mindful of the financial stress and is working to find a solution soon,” an official said.

The government maintains that it plans to completely abide by the Supreme Court order on AGR dues and is also mindful of the financial health of the telecom sector and will keep consumer interest in mind.