Lok Sabha Question No. 4405 (UNSTARRED), answered on 2022-03-30
Subject: AGR Dues
Ministry: COMMUNICATIONS
Asked by: A.K.P. Chinraj

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO. 4405 TO BE ANSWERED ON 30 TH  MARCH, 2022

## AGR DUES

4405. SHRI A.K.P. CHINRAJ:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether the Government is planning to return the Bank Guarantees (BGs) to the telecom companies worth almost Rs.23,000 crore kept in connection with their outstanding Adjusted Gross Revenue (AGR) dues and if so, the details thereof;
- (b) the reasons behind the returning of the Bank Guarantees when telecom companies did not comply with the judgement of Supreme court in AGR Due case;
- (c) whether the Government will buy or receive shares in any of the telecom companies and if so, the details thereof;
- (d) whether the Government is not taking any action against the telecom companies who fails to pay the AGR dues and if so, the details thereof; and
- (e) the details of the pending AGR dues to the Government company-wise?

## ANSWER

## MINISTER OF STATE FOR COMMUNICATIONS (SHRI DEVUSINH CHAUHAN)

- (a) & (b) The Government had approved that the TSPs opting for moratorium shall submit a BG of an amount equal to the next payable instalment, including that part of the deferred amount due with that instalment, thirteen months before the next due date of payment (after the deferment period). In view of the fact that they have opted for such moratorium, no instalment is due necessitating security in the form of BGs till 13 months before the next payable instalment post moratorium. Accordingly, the Government is planning to return the Bank Guarantees (BGs) to the telecom companies, in respect of BGs submitted to securitize the deferred payment spectrum instalments for the spectrum auction 2012, 2014, 2015 & 2016 for which moratorium has been opted by Telecom Service Providers (TSPs).
- (c) Pursuant to the reforms and support package approved by the Government for the Telecom Sector, M/s Vodafone Idea Limited (VIL) has exercised its option for converting its interest liabilities arising out on account of deferred spectrum auction instalments and AGR dues pertaining to the moratorium period, by way of equity. Ministry of Finance shall finalize the procedure, method, rate of conversion, mix of equity and preferential capital (if any), compliance with SEBI and other relevant guidelines.
- (d) As per the direction given by the Hon'ble Supreme Court on Adjusted Gross Revenue (AGR) matter in its  judgement  dated  01.09.2020,  Department  of  Telecommunications  had  filed  a  compliance  affidavit  on 07.04.2021 in the Hon'ble Supreme Court.  Further, the Government has given a moratorium of four years on payment of AGR dues to all eligible TSPs.
- (e) Details of the pending AGR dues of major access service providers are Annexed.

## ANNEXURE

## (Amount in Rs Cr.)

| Company wise pending AGR Dues of major access service providers   | Company wise pending AGR Dues of major access service providers   | Company wise pending AGR Dues of major access service providers   |
|-------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|
| S. No.                                                            | Name of the company                                               | AGR Dues*                                                         |
| 1                                                                 | Bharti Group                                                      | 31280                                                             |
| 2                                                                 | Tata Group                                                        | 12931.63                                                          |
| 3                                                                 | Vodafone Idea Limited                                             | 59236.63                                                          |
| 4                                                                 | Quadrant Televentures Limited                                     | 179.18                                                            |
| 5                                                                 | Reliance Jio Infocomm Limited                                     | 631                                                               |
| 6                                                                 | Aircel Group                                                      | 12389                                                             |
| 7                                                                 | Reliance Communications                                           |                                                                   |
| 8                                                                 | Reliance Telecom Limited                                          | 25194.58                                                          |
| 9                                                                 | Sistema Shyam Teleservices Ltd.                                   |                                                                   |
| 10                                                                | Videocon Telecommunications Ltd.                                  | 1549                                                              |
| 11                                                                | Loop Telecom Pvt. Ltd                                             |                                                                   |
| 12                                                                | Etisalat DB Telecom Private Limited                               | 595.76                                                            |
| 13                                                                | S Tel Pvt Limited                                                 |                                                                   |
| 14                                                                | BSNL                                                              | 16224.33                                                          |
| 15                                                                | MTNL                                                              | 5009.10                                                           |
| Total                                                             | Total                                                             | 165220.21                                                         |

*Dues  are  upto  FY  2018-19  and  subject  to  revision  on  the  basis  of  representations  by  TSPs, Departmental assessments, CAG/Special Audits, Court Cases etc.

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