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Regular-article-logo Friday, 26 April 2024

Relief eludes telcos, meet inconclusive

Further discussions are needed, and the DCC is likely to meet again in the coming days

Our Special Correspondent New Delhi Published 28.02.20, 07:14 PM
Wait lengthens

Wait lengthens (Shutterstock)

The crucial meeting of the Digital Communications Commission (DCC) on Friday could not arrive at a decision on relief to the distressed telecom sector as government officials said more details are required for reconciliation of data on statutory dues.

In a day of hectic parleys at the DoT, Vodafone Idea CEO and MD Ravinder Takkar also met telecom secretary Anshu Prakash but refused to comment on the details of his discussion.

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Sources said the DCC, the highest decision-making body of the government on telecom, discussed the issue and looked at options at the meeting which lasted two hours.

Further discussions are needed, and the DCC is likely to meet again in the coming days but no date has been fixed for the next meeting, they added. The telecom department is awaiting more details required for reconciliation of AGR data, the sources added.

“A lot of discussion would be needed, AGR related data needs to be assessed,” the source said.

Secretaries in the ministries of finance, commerce, and electronics and IT, as well as the CEO of NITI Aayog are the members of the DCC.

Vodafone Idea, the worst hit telco with Rs 53,000 crore in AGR dues, has told the government that it would not be able to pay the dues unless state support is extended to it to survive the crisis.

While the rationale behind giving any relief to the telcos is that government wants to avoid a duopoly situation in the event Vodafone Idea is forced to shut operations, it is also in a bind over the implementation of the Supreme Court order which directs the DoT to recover the dues.

The DoT is examining the COAI and Vodafone Idea proposals and waiting for the self-assessment numbers of the telcos. Once the department has an idea how much the telcos' calculations are and reconcile with its own demands, the picture will be a little clear about payment.

One option is upfront payment of the entire principal amount on licence fee and spectrum usage charges and 50 per cent of the interest, penalty and interest on penalty. The rest could be paid over four years with interest.

The other option is once the DoT gets the self-assessment figures of the telcos, it may ask them to pay that amount immediately and the gap between the DoT and telcos could be a staggered payment after reconciliation of both figures over 4 to 5 years, said sources.

The government is also said to be considering setting up a stress fund for telcos to draw from and pay off AGR dues and repay on easy terms, besides deferment of licence fees and spectrum usage charge (SUC) for a substantial period to free up cash flows.

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