Relief in the works for AGR-hit telecom companies The development comes a day after the DoT issued notices to telcos to pay their remaining AGR dues without any further delay, increasing pressure on Vodafone Idea. The DoT also wrote to telcos seeking details and explanations for their self-assessment, needed for the government to reconcile the amounts with its calculations. ET Bureau

NEW DELHI: The government is working on steps to provide relief to the telecom sector that will need to be ratified by the Cabinet, a senior official said, raising the prospect of a possible reprieve for financially strapped Vodafone Idea, which faces AGR dues of Rs 53,000 crore. On the eve of Vodafone Group CEO Nick Read’s visit to India, the official said any package will need to conform to the Supreme Court’s AGR ruling. The next hearing is on March 17.

“Any decision will have to be cleared by the Cabinet. The government’s intent is clear — it does not want any company to close down,” the official told ET. “However, the relief will be for everyone, not just Vodafone Idea.”

Vodafone Idea, a JV between Vodafone Group and Aditya Birla Group, is the most precariously placed of the operating telcos, facing AGR dues of Rs 53,000 crore as estimated by telecom department.

‘Relief Steps Not Finalised Yet’

The company has said it will have to shut if it doesn’t get any relief on its AGR dues or if its bank guarantees are invoked to recover part of the amount. Its own assessment has pegged AGR dues at around Rs 23,000 crore, of which Rs 7,000 crore is the principal. The telco has so far paid only Rs 3,500 crore.

The official said that no relief steps have been finalised as yet.

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