Tata Sons has initiated the process of arranging funds to pay off the AGR dues of Tata Teleservices. Tata Teleservices is required to pay Rs 13,823 crore as AGR dues. It is very likely that TCS would be sourcing the funds to clear the dues.
The conglomerate has started arranging for funds even as the Supreme Court is scheduled to hear the modification petitions filed by telcos. The apex bank recently rejected the pleas by Bharti Airtel, Vodafone Idea and Tata Teleservices to review the verdict that widened the government's definition of adjusted gross revenue, leaving the three telcos with a massive bill of Rs 1.02 lakh crore.
According to a report in The Economic Times, an official in the know told the daily that they realise the importance of having a payment plan in place.
In the upcoming hearing if the Supreme Court allows the telcos to negotiate with the telecom department (DoT) then the deadline might get extended. However, if that is not the case then Tatas will have to cough up the AGR dues in a hurry.
An official told the daily that the amount payable is "unreasonably huge" but also they aim to pay off every single due owed by the group companies.
The holding company's finance team is handling the discussions on other possible avenues of raising funds to deal with the case. This tussle comes amid another legal battle between Tata Trust and the income tax department.
Tata Teleservices, Vodafone Idea and Bharti Airtel filed review petitions against the AGR dues verdict, which was dismissed by the apex court. Vodafone has dues of Rs 53,039 crore and Bharti Airtel has Rs 35,586 crore respectively.