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telegraphindia.com 15 Sep, 2021 01:15 am

Govt considers four-year moratorium on AGR dues of telecom players

Govt considers four-year moratorium on AGR dues of telecom players
Indications are the Centre is unlikely to reduce or waive dues or the interest, penalty, and interest on penalty on existing dues that were upheld by the Supreme Court

Govt to consider 4-year moratorium on AGR dues of telecom players Indications are the Centre is unlikely to reduce or waive dues or the interest, penalty, and interest on penalty on existing dues that were upheld by the Supreme Court Representational image.Indications are the government is unlikely to reduce or waive AGR or the interest, penalty, and interest on penalty on existing dues that were upheld by the Supreme Court in its September 2020 judgement.The Supreme Court last year ordered the mobile carrier, a joint venture between the Indian unit of Britain’s Vodafone Group and Aditya Birla Group’s Idea Cellular, to pay just over $8 billion to the government to settle long-standing dues.Meanwhile, banks led by the State Bank of India have called on the Centre to give debt-laden Vodafone Idea more time to clear its tax dues and spectrum fees, two bankers and a government official familiar with the matter said, according to Reuters.

In June, Vodafone Idea's then non-executive chairman Kumar Mangalam Birla warned that without a government reprieve the Indian mobile carrier's “financial situation will drive its operations to an irretrievable point of collapse”.Vodafone Idea, in its annual report, has flagged the industry's “unsustainable financial duress” and hoped that the government would provide the necessary support to address “all structural issues” faced by the sector.

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