Vodafone Idea Limited has written a letter addressed to the Department of Telecommunications (DoT), finance ministry and the NITI Aayog seeking a number of relief measures for paying adjusted gross revenue (AGR) dues. In the letter, Vodafone Idea has asked the government to grant an option of paying remaining AGR dues in a staggered manner, over 15 years, after an initial moratorium of three years; a cut in licence fee from eight per cent to three per cent; reduction of spectrum usage charges from three per cent to one per cent in future auctions and establishment of a floor for tariffs. Moreover, it has requested the government to adjust goods and services tax (GST) refunds worth Rs 80 billion against its dues.
The letter comes ahead of a meeting to be held by the Digital Communications Commission (DCC), which may discuss steps to provide relief to stressed telcos.
As per DoT estimates, Vodafone Idea has to pay dues of about Rs 570 billion. However, the operator has so far paid only Rs 35 billion. According to the operator’s own estimates, the dues amount to around Rs 230 billion, of which Rs 70 billion is the principal amount.