INSUBCONTINENT EXCLUSIVE:
Mumbai: Vodafone Idea has called on the government to allow it to pay adjusted gross revenue (AGR) dues over 15 years
The telecom company has also asked for a tax refund, cuts in licence fees and spectrum usage charges (SUC) and the establishment of a floor
for tariffs among measures to help remain viable.
In a letter to the Department of Telecommunications, the finance ministry and Niti Ayog,
the telco, which has over 300 million subscribers, said it needs help from the government to stay in business
may discuss some steps on providing relief to stressed telcos such as Vodafone Idea.
In its letter, the operator sought a goods and services
tax (GST) refund of Rs 8,000 crore, which can be adjusted against its AGR dues, and the option of paying the remaining amount in a staggered
Its own estimates peg dues at around Rs 23,000 crore, of which Rs 7,000 crore is the principal amount
Telcos annually pay 8% of AGR as licence fees; Vodafone Idea wants it reduced to 3%
The industry has been long calling for a reduction in SUC as well, which is paid at 3-5% of AGR
The telco wants it brought down to 1%.
ET has reported that the government is considering deferring licence fee and SUC payments for a
substantial period to help free up cash flows at telcos, besides setting up a stress fund to offer loans on easy terms
