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Government to verify AGR math of all telecom companies via 'test checks'

The exercise will help the department assess the gap between telcos' claim of what their AGR dues are and its own estimates.

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NEW DELHI: The telecom department will verify telcos' claims of lesser AGR dues by initiating random 'test checks' before March 17, sources said.

The 'test check' will happen for all telcom firms but will start with those claiming they have already made full and final settlement towards their statutory liabilities.

The exercise will help the department assess the gap between telcos' claim of what their adjusted gross revenue (AGR) dues are and its own estimates.

While Tata Teleservices has paid Rs 2,197 crore as its AGR dues to the government and claims it has mad its full and final by its calculations, Bharti Airtel made a part payment of Rs 10,000 crore to DoT on Monday.

According to media reports, the government will collect a sample size of last one or two years of amount generated by the telcos to calculate the range of amount for AGR and check if they with the government's calculations. 

What is AGR? 

The Adjusted Gross Revenue (AGR) calculation is what the government and telecom majors have had a disagreement over since 2005.

While the telecom companies argued that AGR should include income only from telecom operations, the government disagreed and said it should also include non-telecom incomes such as the sale of assets, interest on deposits, rents, etc.

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