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Tuesday, February 18, 2020

Telcos file review plea in SC on interest fee, penalty waiver

The telcos, through separate petitions, sought a waiver of interest, penalty, and interest on the penalty.

By: ENS Economic Bureau | New Delhi | Published: November 23, 2019 1:50:43 am
 Airtel Vodafone SC spectrum charges, spectrum charges Telecom, Indian Express business news The government on Wednesday cleared a package that offered some cash flow relief for the operators by way of giving them a two-year moratorium from paying their deferred spectrum dues.

Telecom operators Bharti Airtel, Vodafone Idea, and Tata Teleservices on Friday separately moved the Supreme Court, seeking a limited review of its October 24 order which asks the companies to pay licence fee and spectrum usage charges on their overall revenues – those accruing from even streams which are not part of telecom licence – within three months.

The telcos, through separate petitions, sought a waiver of interest, penalty, and interest on the penalty. Of the Rs 1.47 lakh crore of dues which the telcos are required to pay within January 24, 2020, as a result of the apex court’s order, nearly 75 per cent comprises interest, penalty, and interest on the penalty. Of the overall Rs 1.47 lakh crore, the licence fee dues stand at Rs 92,642 crore, while spectrum usage charge (SUC) is at Rs 55,054 crore. Vodafone Idea and Bharti Airtel, together posted a loss of around Rs 74,000 crore last week after provisioning for the adjusted gross revenue (AGR) related dues.

The government on Wednesday cleared a package that offered some cash flow relief for the operators by way of giving them a two-year moratorium from paying their deferred spectrum dues.

Meanwhile, Fitch Ratings said on Friday the moratorium may not be sufficient for Airtel and Vodafone Idea to offset the impact of the Supreme Court ruling.

(FE with PTI)

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