New Delhi. Adjusted gross income (AGR) is a utilization and license cost that telecom firms should pay to the Department of Telecommunications. For the previous few months, Airtel and Vodafone Idea have been below stress concerning AGR. Petitions of those firms have been filed within the Supreme Court. Meanwhile, one other unhealthy information associated to AGR has come for Airtel. AGR might enhance the load on Airtel. Airtel may additionally should pay a bigger share of Videocon Telecommunications' excellent AGR. Let us let you know that in March 2016, Airtel had bought 25 MHz spectrum in 1800 MHz band from Videocon Telecommunications, for which the corporate might should pay AGR as utilization fees. <! –
Airtel additionally purchased spectrum from the closed telecom firm Aircel. But there’s a risk that DoT doesn’t embrace Aircel's dues in Airtel's invoice.
– AGR: Now authorities turns into strict on telecom firms, Airtel can pay Rs 10000 crore
How a lot is the excellent AGR
The excellent AGR of DoT is Rs 35,586 crore on Airtel, Rs 2041 crore on Videocon and Rs 11950 crore on Aircel. Airtel paid 17000 crore rupees out of its arrears on 17 February. According to an Economic Times report, based on buying and selling guidelines set in 2015, the corporate promoting the airwaves is required to pay any liabilities earlier than the spectrum deal. But if any legal responsibility is detected after the deal, the telecom regulator can ask both the vendor or the client to make fee.
Airtel-Aircel deal was signed in 2016
Airtel purchased 23 MHz spectrum within the 2300 MHz 4G band from Aircel in 2016. The report stated that there’s a risk that the Department of Telecommunications won’t move on the burden of Aircel to Airtel. The cause for that is that Aircel owes 2G and 3G airwaves, whereas Airtel barely purchased used 4G spectrum. Similarly, the stability of AGR of Reliance Communications Rs 21921 crore won’t be tied to Reliance Jio.
When will Airtel pay the remaining quantity
Bharti Airtel has paid Rs 10,000 crore out of the excellent AGR. The remaining quantity will probably be deposited earlier than 17 March. Airtel has stated this in a letter to the Department of Telecommunications. Also, Airtel has additionally stated that the corporate wants a while to calculate the arrears in 22 circles. Vodafone has the worst situation by way of AGR. On which AGR of greater than Rs 53000 crores is left, to date it has paid solely Rs 2500 crores. At the identical time, Jio has cleared its AGR invoice.