As per industry sources, Tata Teleservices has chosen to convert the interest on spectrum and adjusted gross revenue (AGR) dues into equity. With this Tata Teleservices becomes the second company after Vodafone Idea (Vi) to do so. The company will inform the Department of Telecommunications (DoT) regarding the same.
With Tata Teleservices opting for conversion of interest on spectrum dues into government equity, the government will now own 9.5 per cent stake in the telco. As per estimates, the net present value (NPV) of this interest is expected to be approximately Rs 8.50 billion, subject to confirmation by the DoT.
Tata Teleservices has AGR dues of Rs 167.98 billion of which it has paid Rs 41.97 billion. Previously, the operator had opted for the four-year AGR and spectrum payment moratorium.