Telecom Operators tries to Lower the Liabilities Telecom operators have to pay massive AGR dues which will create enormous pressure on their financial credibility. Till now, Reliance Jio is the only telco which has paid their full AGR dues of Rs 195 crore. As per the words of analysts “the basis on which telcos are self-assessing their AGR dues is unknown. However, previous disputes and involvement of supreme court and government departments, the final call will be done by the supreme bench itself along with government officials decision. The views of the Supreme Court and government will finalise the AGR dues self-assessed by telecom operators”. This news is reported by Livemint. Reduction in AGR Dues Will Relief Telecom Operators If the government lowers the amount of liability towards AGR dues, telecom operators and investors will breathe peacefully. Especially, Vodafone Idea will try to get back in the industry at the telco giant have already noted that they will be forced to shut down if no relief is given by the government. Bharti Airtel has already created a reserve Rs 34,260 crore and even raised funds to meet the liabilities. As per a scenario analysis, if Bharti Airtel pays their AGR dues of Rs 35,000 crore in full settlement, it will lower their cash levels and result in increased consolidated entity’s adjusted debt to Ebitda from 4.1 times to 4.4 times in the current fiscal year.
