Lok Sabha Question No. 3384 (UNSTARRED), answered on 2022-03-23
Subject: AGR Dues of all TSPs
Ministry: COMMUNICATIONS
Asked by: Andimuthu Raja

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO. 3384 TO BE ANSWERED ON 23 RD  MARCH, 2022

## AGR DUES OF ALL TSPS

## 3384.   SHRI A. RAJA:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) the details of the AGR dues of all the private Telecom Service Providers (TSPs), groupwise as on date;
- (b) the details of the charges levied by the Government on the private TSPs as interest on such AGR dues for different periods: (i) prior to 01.04.2016, (ii) after 01.04.2016, (iii) after 24.10.2019, and (iv) from 01.10.2021;
- (c) whether the Government has reduced the interest rates for delayed payments by TSPs on 'license fee, or any other dues payable under License beyond the stipulated period' and changed the methodology of calculating from 'compounding monthly' to 'compounding annually' and if so, the details thereof;
- (d) the details of the waived penalty for shortfall in payments and interest on penalty; and
- (e) whether the Government has given all the TSPs the option to defer their AGR dues by four years and if so, the impact on the Government revenues, Conversion of deferred spectrum and AGR interest dues into Equity?

## ANSWER

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

- (a) Assessment is an ongoing process and subject to revision based on representations, Audits, Litigation etc. The AGR dues assessed so far of the major Private Telecom Access Service Providers, group-wise as on date is Rs. 143986.78 Cr . The detail in respect of major Telecom Access Service Providers is enclosed in Annexure -I.
- (b) & (c) Interest is charged on delayed payment of license fee and any other dues payable under the license, as per license agreement. After the approval of the Cabinet in September 2021, amendment to license agreement has been made, to charge the delay in payment of License fee or any other dues payable under the license at a rate of 2 % above the one  year Marginal Cost of Lending Rate (MCLR) of State Bank of India, existing as on the beginning of the Financial Year and the interest shall be compounded annually. The aforesaid changes are effective from 01.10.2021. The interest rate charged by the Government on the AGR dues for different periods: (i) prior to 01.04.2016, (ii) after 01.04.2016, (iii) after 24.10.2019, and (iv) from 01.10.2021 is enclosed in Annexure -II.

(d) The Cabinet has approved the removal of penalty and interest on penalty with effect from 01.10.2021. No penalty for the shortfall in payments and Interest on such penalty has been waived.

(e) Department of Telecommunication, as per the approval of Union Cabinet has given an option  of  moratorium  of  up  to  4  years  on  Annual  Deferred  Spectrum  Payment  and  on  Annual Instalment of Adjusted Gross Revenue (AGR) related dues as payable vide Hon'ble Supreme Court Order dated 01.09.2020, to the eligible Telecom Service Providers (TSPs). Cabinet also approved, the option to pay the interest amount arising due to the said deferment of the payment by way of equity.

The moratorium scheme is revenue neutral. Telecom Service Providers (TSPs) are not exempted from paying their dues. Interest is applicable on deferred payment, keeping the Net Present Value (NPV) protected.

## ANNEXURE-I

## (Amount in Rs Cr.)

| AGR Dues of Major Private Telecom Access Service Providers   | AGR Dues of Major Private Telecom Access Service Providers   | AGR Dues of Major Private Telecom 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                                            |                                                              |
|                                                              | Total                                                        | 143986.78                                                    |

## ANNEXURE-II

| The details of the charges levied by the Government on private TSPs as interest on such AGR dues for different periods:   | The details of the charges levied by the Government on private TSPs as interest on such AGR dues for different periods:   | The details of the charges levied by the Government on private TSPs as interest on such AGR dues for different periods:   |
|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| (i)                                                                                                                       | Prior to 01.04.2016                                                                                                       | Interest Rate(%)                                                                                                          |
|                                                                                                                           | Year                                                                                                                      | (PLR + 2%)                                                                                                                |
|                                                                                                                           | 2006-07                                                                                                                   | 12.25                                                                                                                     |
|                                                                                                                           | 2007-08                                                                                                                   | 14.25                                                                                                                     |
|                                                                                                                           | 2008-09                                                                                                                   | 14.25                                                                                                                     |
|                                                                                                                           | 2009-10                                                                                                                   | 14.25                                                                                                                     |
|                                                                                                                           | 2010-11                                                                                                                   | 13.75                                                                                                                     |
|                                                                                                                           | 2011-12                                                                                                                   | 15                                                                                                                        |
|                                                                                                                           | 2012-13                                                                                                                   | 16.75                                                                                                                     |
|                                                                                                                           | 2013-14                                                                                                                   | 16.45                                                                                                                     |
|                                                                                                                           | 2014-15                                                                                                                   | 16.75                                                                                                                     |
|                                                                                                                           | 2015-16                                                                                                                   | 16.75                                                                                                                     |
| (ii)                                                                                                                      | After 01.04.2016                                                                                                          |                                                                                                                           |
|                                                                                                                           | Year                                                                                                                      | (MCLR+ 4%)                                                                                                                |
|                                                                                                                           | 2016-17                                                                                                                   | 13.2                                                                                                                      |
|                                                                                                                           | 2017-18                                                                                                                   | 12                                                                                                                        |
|                                                                                                                           | 2018-19                                                                                                                   | 12.15                                                                                                                     |
|                                                                                                                           | 2019-20                                                                                                                   | 12.55                                                                                                                     |
| (iii)                                                                                                                     | After 24.10.2019                                                                                                          |                                                                                                                           |
|                                                                                                                           | Year                                                                                                                      | (MCLR+ 4%)                                                                                                                |
|                                                                                                                           | 2019-20                                                                                                                   | 12.55                                                                                                                     |
|                                                                                                                           | 2020-21                                                                                                                   | 11.75                                                                                                                     |
| (iv)                                                                                                                      | From 01.10.2021                                                                                                           |                                                                                                                           |
|                                                                                                                           | Year                                                                                                                      | (MCLR+ 2%)                                                                                                                |
|                                                                                                                           | 2021-22 (From 01.10.21)                                                                                                   | 9                                                                                                                         |

PLR    -   Prime Lending Rate of State Bank of India MCLR-   Marginal Cost Lending Rate of State Bank of India

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