Airtel defers AGR dues payment by four years
Telecom operator Bharti Airtel on Thursday said it has opted to defer the payment of AGR dues till FY 2018-19, which are not tabulated in the Supreme Court’s order, by up to four years. It has retained the right to pre-pay instalment amounts and would not avail of the option of the conversion of the interest dues that would accrue into equity.
Sources at the company said the amount adds up to about Rs 3,000 crore for the additional years. “We wish to inform you that the company has informed to DoT (Department of Telecom) that the company shall avail the option to defer the payment of the AGR (Adjusted Gross Revenue) dues up to FY 2018-19 which are not tabulated in the Hon’ble Supreme Court order, up to four years (applicable from FY 2021-22 to FY 2024-25) while retaining the right to pre-pay the instalment amounts,” Bharti Airtel said in a regulatory filing.
The company also made it clear that it will “not avail the option of conversion of the interest dues that accrue under aforesaid option into equity ”. Airtel said the DoT had offered the option of a fouryear 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 the 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 decided to defer the payment of additional AGR dues of Rs 8,837 crore by a period of four years. Google deal cleared The Competition Commission of India (CCI) on Thursday approved Google’s proposed acquisition of a minority stake in telecom major Bharti Airtel.
The deal has been cleared on the basis of modifications offered by the acquirer, according to an official release. Google International Llc and Airtel have entered into an investment agreement to buy a minority and non-controlling stake of 1.28 per cent of equity share capital in the telecom player.
Along with the investment agreement, both companies through their affiliates have also entered into certain commercial deals. The parties also intend to enter into certain other commercial arrangements in future, as per the release. Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices in the marketplace. Google International LLC is a wholly-owned subsidiary of Google LLC.