COAI writes to govt for slew of relief measures in the face of AGR crisis

Cellular Operators Association of India (COAI) has appealed to the government for a slew of relief measures to mitigate the stress in the telecom sector .

The industry body which represents private players has asked the telecom department to look into reduction of license fee , spectrum usage charges , relook at bank guarantees , set off GST credits against statutory dues , grant a loan equal to AGR amount at 6% interest among others .

“…telecom Industry has invested over Rs 10.44 lakh crores in setting up world class mobile networks over the last 20 years and has committed around Rs 3.68 Lakh crores in spectrum through auctions since 2010. However, the revenues and profitability have declined significantly. The debt burden is well over Rs 7 lakh Crores, and there is still significant investment required in the future,” said the letter sent by COAI director general Rajan Mathews to DoT’s secretary Anshu Prakash.

The letter comes on the day when Digital Communications Commission (DCC) – the highest decision-making body of the DoT – which may discuss some steps on providing relief to stressed telcos such as Vodafone Idea.

Infact Vodafone Idea wrote to telecom department on Wednesday, finance ministry and Niti Ayog for similar relief measures .

The pressure is now for a solution to the AGR crisis, with the next hearing in the Supreme Court on March 17 in mind. Having already rejected a petition seeking review of its October 2019 order, which said AGR should include non-core items, the Supreme Court’s hearing of the modification pleas on March 17– which is also the deadline for payment of dues — assumes critical importance.