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AGR case | Govt mulling creation of telecom fund to ease payment of dues for telcos: Report

The telecom fund is expected to help telcos manage their cash flows and is fiscally neutral for the government, the report noted.

February 19, 2020 / 06:44 PM IST
 
 
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The Prime Minister' Office, the Finance Ministry and telecom companies have been discussing setting up a telecom fund to ease the payment of AGR dues, sources told ET Now on February 19.

As per the report, the adjusted gross revenue dues (AGR) that are due to the government can be put into the telecom fund, which can then be extended in the form of loans to the companies with soft interest.

Bharti Airtel chairman Sunil Bharti Mittal and Vodafone Idea chairman KM Birla reportedly met with the Finance Ministry officials on February 19  to discuss the possibility of setting up such a telecom stress fund.

The telecom fund is expected to help telcos manage their cash flows and is fiscally neutral for the government, the report noted.

Sources told the publication that the elongation of the timeline of repayment of AGR dues and spectrum dues for the telcos was another option being considered.

Another option on the cards would be for the government to introduce a legislation or an ordinance to save the telcos.

The report noted that the government is also taking a legal opinion on waiving off penalties and interest payment on the AGR dues of telecom firms.

The Supreme Court last week rejected a plea by companies such as Bharti Airtel and Vodafone Idea for extension in the payment schedule and asked them to deposit an estimated Rs 1.47 lakh crore in past dues for spectrum and licences.

Moneycontrol News
first published: Feb 19, 2020 06:43 pm

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