InvestorQ : How much will telecom players like Bharti Airtel and Vodafone have to pay as AGR dues in the current fiscal year?
Priyanka N made post

How much will telecom players like Bharti Airtel and Vodafone have to pay as AGR dues in the current fiscal year?

Answer
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diksha shah answered.
4 weeks ago


Since the Supreme Court passed a judgment was passed on the AGR issue a couple of weeks ago, there was confusion over whether the telcos will be allowed to set off their amounts paid against the first year dues of AGR and spectrum payment.

Now, there is a clarification on that front. The Minister of State for Communications confirmed to Parliament that the telecom operators will have to pay 10% of AGR dues by March 31. This will be 10% of the balance and exclusive of the amount already paid during the year.

The Supreme Court had already clarified in October last year and again reiterated in August this year that there would be no rethink on the amount of dues payable to the DOT. But, the SC allowed a 10-year time frame for telcos to pay their AGR and spectrum dues to the DOT. In terms of outstanding amounts, Bharti Airtel owes Rs.43,980 crore to the DOT of which it has paid Rs.18,004 crore till date. Vodafone owes a huge Rs.58,254 crore of which only Rs.7854 crore is paid. Both have to pay 10% of the remaining amount by Mar 31, 2020.

This is likely to be negative for the cash flows of Bharti and Vodafone. For example, this means that Airtel has to shell out another Rs.2600 crore before Mar-21, which is OK. But, Vodafone has to pay Rs.5100 crore by Mar-21, which could actually be stressful.