The final adjusted gross revenue (AGR) amount that telecom service providers have to pay the Department of Telecommunications (DoT) will likely be more than the current estimate of statutory dues, which is around Rs 1.5 lakh crore. As a recent report by The Economic Times suggests, the final calculations might swell by as much as 40 per cent.
This is because the amount, which was submitted to Parliament and the Supreme Court, is calculated only for the period till the financial year 2016-17.
As per the calculations of the Ministry of Communications, the outstanding license fee dues from 16 telecoms, from 2004-05, amounted to Rs 92,642 crore. However, this is based on calculations till the financial year 2016-17. The amount is not final as the calculations do not include the last two financial years, and interest, penalty and interest on penalty amounts.
In addition to the license fee, there is what is known as spectrum usage charge (SUC). According to a reply by the Centre in Parliament, SUC amounted to Rs 55,054 crore till 2018-19. The SUC, however, reportedly has been updated till January 30 this year and the amount comes up to Rs 70, 869 crore.
DoT officials are busy crunching the numbers. The process is, albeit, a long and time-consuming one as the calculations span 22 circles.
"The department has been facing a challenge in carrying out the revised assessments due to various issues related to debit voucher reports (DVRs). Telecom operators, including Airtel and Vodafone Idea, have challenged many DVRs. Also, circle offices have not adopted uniform practice in accounting. The DoT has asked them to re-verify DVRs at the earliest in the light of Supreme Court judgment," an official source was quoted by PTI in a recent report.
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According to estimates prepared by the DoT, Airtel owes nearly Rs 35,586 crore, including licence fee and spectrum usage charges, to the government. Vodafone Idea is staring at dues worth Rs 53,000 crore, which includes up to Rs 24,729 crore of spectrum dues and another Rs 28,309 crore in licence fee. Tata Teleservices owes around Rs 13,800 crore, BSNL Rs 4,989 crore and MTNL Rs 3,122 crore.
The apex court on February 14 came down heavily on the telecom department for not taking steps to recover statutory dues, estimated to be around Rs 1.47 lakh crore, from operators including Bharti Airtel, Vodafone Idea, Tata Teleservices, among others.
Of Rs 1.47 lakh crore, around Rs 1.13 lakh crore is likely to be recovered, as other companies, which are liable to pay AGR dues, have shut down their businesses. Anil Ambani-owned Reliance Communications and Aircel are going through insolvency proceedings.
Of the total demand raised, Bharti Airtel, Vodafone Idea and Tata Group have made part payment of about Rs 10,000 crore, Rs 2,500 crore and Rs 2,197 crore, respectively.
The next hearing of the case is listed for March 17.
