As per the government, the Cabinet had approved a formula to recover adjusted gross revenue (AGR) dues from telcos over 20 years. The government had filed an application in the Supreme Court (SC) post the cabinet nod, keeping in mind the interests of 900 million customers.
In his written reply to LokSabha, minister of communications and electronics and information technology, Sanjay Dhotre, said that the formula to recover AGR dues over 20 years was approved by the Cabinet, after recommendations from the Digital Communications Commission (DCC), which had discussed the issue in February 2020.
“Consequent to the approval by the Cabinet, an application has been moved before the SC on March 16, 2019, seeking permission to pay the unpaid or remaining to be paid amount of past DoT assessed/calculated dues in annual instalments over 20 years, duly protecting the net present value of the said dues using a suitable discount rate,” Dhotre said.
Additionally, telecom minister Ravi Shankar Prasad stated that the government has balance three things — survival of the sector, compliance of the court’s order and interest of consumers.” However, the minister refuted to comment on the AGR case since it was in court.
The two ministers were referring to the recent application filed by theDepartment of Telecommunications (DoT) in SC, seeking permission to allow telecom operators to pay their AGR dues over 20 years at a reduced interest rate of 8 per cent.