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Such a schedule would provide huge relief to Indian telcos struggling to find the needed funds
The Cellular Operators’ Association of India (COAI) is proposing a 10–15-year schedule for telcos to pay their debts to the Indian government.
The adjusted gross revenue (AGR) debts levied last year run into the billions for companies like Bharti Airtel and Vodafone Idea, who are struggling to cobble together the funds for the exorbitant payments.
Under the COAI’s suggested repayment scheme, companies would be required to pay a roughly 15% part-payment upfront, with a two-year memorandum to follow.
“Give telecom companies 10–15 years for payment of the full AGR dues, a two-year moratorium and an interest rate at interbank borrowing rate levels that is at around 4–5%," said the COAI director general Rajan Mathews.
The COAI argues that these terms would leave telcos enough funds to continue investing in network expansion and new technologies, while also providing a significant immediate financial boon to the government from the upfront payments.
Bharti Airtel has managed to raise around $3 billion by issuing new shares, but Vodafone Idea has struggled to find a way to garner the required funds and has threatened to collapse.
Alongside Tata Teleservices, the two telcos have jointly filed a modification application in the Supreme Court seeking more time, after their first pleas to review the charges were rejected by the Court earlier this month. According to the Supreme Court’s website, Bharti Airtel and Vodafone Idea will have their new plea heard on the 3rd of February.
The deadline for the payment of AGR dues was initially set at January 23rd, but the Indian Department of Telecommunications has decided not to take any coercive action against the telcos until the Supreme Court has made their decision.
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