The telecom department (DoT) has moved a petition in the Supreme Court to allow companies to make interest-free adjusted gross revenue (AGR) payment of Rs 1.47 lakh crore over 20 years, CNBC-TV 18 reported.
The DoT also proposed that telecom companies not be charged penalty, and interests on penalty and principal beyond October 24, the date that Supreme Court delivered its judgement on long-pending AGR dues.
Telecom companies also will be charged an 8 percent interest on the staggered payments duly protecting the net present value (NPV) of the said dues using a discount rate of 8% (based on one-year Marginal Cost of Lending Rate of SBI which is currently 7.75%).
The DoT said the formula for the recovery dues was worked out after detailed deliberations by the government and the Cabinet. The DoT has sought the apex court's approval for the formula.
The DoT has cited the adverse impact on the telecom and banking sectors as a key reason behind the petition.
In the petition, the DoT has sought a modification to the AGR judgment and subsequent orders.
The SC Bench orderED the application to be posted before the same Bench which gave the Oct 24 verdict on AGR as and when it will sit.
Comments ↓
An Appeal...
Dear Reader,
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.
