Telecom major Bharti Airtel on Thursday informed Department of Telecommunications that it shall avail the provision of deferring its Adjusted Gross Revenue (AGR) dues till FY2018-19 for up to four years.
The telco stated that it will opt to choose the option to defer the payment of the AGR dues up to FY 2018-19 till FY 2024-25 while maintaining the right to prepay the instalment payments. Furthermore, the company said that it will not be converting its outstanding interest payments into equity.
“We wish to inform you that the Company has informed to DoT that the Company (a) shall avail the option to defer the payment of the AGR dues upto FY 2018-19 which are not tabulated in the Hon'ble Supreme Court Order, upto four years (applicable from FY 2021- 22 to FY 2024-25),” the company said in its regulatory filing.
Airtel said DoT had offered the option of four-year moratorium (applicable from FY 2021-22 to FY 2024-25) for AGR dues up to FY 2018-19 which are not tabulated in the Supreme Court order pertaining to statutory dues as well as for the conversion of the interest dues that accrue into equity.
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.
Last week, debt-ridden telecom operator Vodafone Idea Ltd (VIL) decided to defer payment of additional AGR dues of Rs 8,837 crore by a period of four years.
Shares of Bharti Airtel on Thursday closed 0.45 per cent lower at Rs 684.40 apiece on BSE.
In the month of October last year, Airtel had agreed to the government's four-year hold on the spectrum and AGR payments.
Sunil Mittal, the CEO of the telecom, had previously stated that the business will choose a four-year moratorium on the spectrum and AGR dues, which would allow it to save between Rs 35,000 and 40,000 crore in cash expenditures that could be used for network and other capital development plans.
This comes as the Indian telco giant, among other major telecommunications companies in the country, is being pursued by the Supreme court for the payment of their AGR dues.
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