AGR payment: DOT moves SC, seeks 20-year window

NEW DELHI: In a big relief for telecom operators, the Department of Telecommunications (DOT) on Monday moved the Supreme Court seeking its approval for a 20-year window for payment of around ₹1.47 lakh crore Adjusted Gross Revenue (AGR) dues, as adverse functioning of the telecom firms could have a negative impact on the economy and consumers across the country.

“All licencees impacted by the judgement (October 2019) of the court be allowed to pay the unpaid or remaining to be paid amount of past DOT assessed dues in annual installments over 20 years, duly protecting the net present value of the said dues using a discount rate of 8% (based on One Year Marginal Cost of Lending Rate of SBI which is currently 7.75%)”, said the application filed by the DOT in the apex court.

The DOT has said that the interest on the principal and penalty not be charged beyond judgment date, while dues payable to the government be protected by levy of 8 per cent interest on staggered payments.

“The applicant is conscious of the fact that any immediate adverse impact on the functioning of the telecom service providers would not only have an adverse impact on the overall economy of the nation but would also seriously harm the interest of the consumers,” it said in the application.

The DOT contended in the application that it has analysed the issue in great detail and has given serious consideration to the market economy of this sector. Detailing on the adverse impact of the AGR judgement in