The telecom department (DoT) has moved a petition in the Supreme Court to allow companies to make interest-free adjusted gross revenue (AGR) payment of Rs 1.47 lakh crore over 20 years, CNBC-TV 18 reported.
The DoT also proposed that telecom companies not be charged penalty, and interests on penalty and principal beyond October 24, the date that Supreme Court delivered its judgement on long-pending AGR dues.
Telecom companies also will be charged an 8 percent interest on the staggered payments duly protecting the net present value (NPV) of the said dues using a discount rate of 8% (based on one-year Marginal Cost of Lending Rate of SBI which is currently 7.75%).
The DoT said the formula for the recovery dues was worked out after detailed deliberations by the government and the Cabinet. The DoT has sought the apex court’s approval for the formula.
The DoT has cited the adverse impact on the telecom and banking sectors as a key reason behind the petition.
In the petition, the DoT has sought a modification to the AGR judgment and subsequent orders.
The SC Bench orderED the application to be posted before the same Bench which gave the Oct 24 verdict on AGR as and when it will sit.