DoT looks to revoke bank guarantees if firms fail to pay up

Airtel and Vodafone Idea on Monday paid Rs10,000 crore and Rs 2,500, respectively to the Union government as a part of their AGR linked dues. In all, Bharati owes the government Rs 35,500 crore and Vodafone Idea around Rs 54,000 crore in AGR dues. Tata Teleservices, which had sold its mobile business to Airtel ,made a payment of Rs 2,197 crore to the government against estimated dues of around Rs 14,000 crore. However, sources close to the company said Tatas had made the full and final payment. Reliance Jio had already paid Rs 195 crore towards AGR dues.

From the telecom sector, the government received Rs14,697 crore from three companies, out of the sector's total dues linked to adjusted gross revenue  (AGR) estimated at Rs 1,47 trillion, while the Supreme Court dismissed Vodafone Idea's request to relief from revocation of bank guarantees in case it failed to pay up within the stipulated time period. According to the unified licence agreement, the licensor or DoT can encash bank guarantees and convert it into a cash security if the service provider violates any term of the licence. Experts believe the paid up amount is just a drop in the ocean and would not serve the desired purpose. With that, the Centre has so far got Rs 14,892 crore in AGR dues from telcos, making up for just 10 per cent of the total outstanding amount. Even as Airtel has said it would make the remaining payment before the next date of hearing, loss-making Vodafone Idea has not given a road map yet. Bharti paid Rs 9,500 crore on behalf of Bharti Airtel and Rs 500 crore on behalf of Bharti Hexacom . Vodafone Idea , in a letter dated February 15 had informed the DoT that it had initiated the process of mobilising cash from all possible sources of the company to make the payment within days.