Debt-ridden Vodafone Idea on Thursday said that the telco has decided to defer payment of additional adjusted gross revenues (AGR) of Rs 8,837 crore dues by a period of four years.
The telecom operator in a late night filing on June 22 said that the Department of Telecommunication (DoT) on June 15, has raised AGR demand for additional two financial years beyond 2016-17, which were not covered under the Supreme Court order on the statutory dues.
Vodafone Idea will pay the amount in six equal instalments starting March, 31, 2026.
The government calculates its share of revenue from telecom operators based on their AGR, which is considered to have been earned by them from the sale of services.
Vodafone Idea in the filing said, “Board has approved the exercise of the option of deferment of the AGR related dues by a period of four years with immediate effect, in accordance with the said DoT letter. The amount of the AGR related dues as stated in the said DoT letter is Rs 8,837 crores which is subject to revision on account of disposal of various representations”.
Vodafone Idea said in the filing that the DoT has offered the company a moratorium of four years for all AGR related dues up to FY18-19, which were not included in Supreme Court order dated September 1, 2022 that can be exercised within a period of 15 days by June 30.
“The said DoT Letter also provides the company a option for equity conversion of interest dues upfront for these AGR related dues for which a period of 90 days has been provided from the date of the said DoT Letter,” Vodafone Idea said.
According to data, telecom operators owe over Rs 1.65 lakh crore to the government in AGR up to FY18-19.
The fresh calculation shows AGR liability on Bharti Airtel was Rs 31,280 crore, Vodafone Idea Rs 59,236.63 crore, Reliance Jio Rs 631 crore, BSNL Rs 16,224 crore, MTNL Rs 5,009.1 crore up to FY18-19.
In a separate filing, the teclo said that its board has approved raising of Rs 436.21 crore from Vodafone Group firm Euro Pacific Securities through issue of preferential share at a unit price of Rs 10.2 apiece or warrants at the same price.