NEW DELHI: Even as a war of words rages between telecom industry body COAI and Reliance Jio over whether the government should provide Bharti Airtel and Vodafone Idea relief from AGR dues, sources say that a panel of secretaries is mulling several measures, including a possible moratorium on repayment and a long payment window.
In addition to the committee’s deliberations, several meetings have also been held between officials from the Department of Telecom, the finance ministry and the Prime Minister’s Office (PMO) over the past few days.
“But, the final decision will need to come from the PMO after the committee submits its recommendations,” an official said.
The secretaries’ panel was formed last week to examine measures to relieve stress on the telecom sector arising after the Supreme Court judgement, which ordered the telcos to pay up Rs 92,640 crore in dues within three months to the government.
Additional dues and penalties amounting to over Rs 41,000 crore may also be levied based on the judgement. While, Bharti Airtel and Vodafone Idea both stand to shell out over Rs 40,000 crore each, rival Jio has a liability of just Rs 13-14 crore.
Headed by Cabinet Secretary Rajiv Gauba, sources say the panel is mulling giving the telcos a long repayment period and even a possible moratorium for the first few months. Among other measures being considered are reductions in overall tax liability and a possible tariff floor.
“But, legal opinion is also being sought to avoid any future problems… like whether a waiver can be granted after the SC has given its judgement,” said a source.
According to Department of Telecom officials, the panel is also examining the viability of reducing Universal Service Obligation Fund obligations and spectrum usage charges, both of which are long-time demands of incumbent telecom firms.
The COAI, in its submission, had said that in the absence of relief, the two operators would face an unprecedented crisis, even leading to a monopoly.
However, Reliance Jio has taken a hostile position over COAI’s stand, stating in multiple letters to the telecom ministry that the industry body is acting as a mouthpiece for its rivals.