Following SC rap, telcos asked to pay AGR dues immediately
- The Supreme Court ordered contempt proceedings initiation against Telcom companies for failing to pay even a “single penny” to the government in Adjusted Gross Revenue (AGR) dues, worth ₹1.47 lakh crore, despite an October 2019 judgment.
From Prelims Point of view:
Adjusted Gross Revenue (AGR)
- The usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT)
- divided into spectrum usage charges and licensing fees ( 3-8 %)
Bone of contention:
The definition of AGR has been under litigation for 14 years.
- As per DoT, the charges are calculated based on all revenues earned by a telco – including non-telecom related sources such as deposit interests and asset sales.
- As per Telcos, insist that AGR should comprise only the revenues generated from telecom services.
AGR is very Important in Mains Perspective too , it will soon be covered in Mains section