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Adjusted Gross Revenue (AGR) order
Why is it in news?
- The Supreme Court allowed telecom companies 10 years’ time to pay their adjusted gross revenue (AGR) dues to the government.
Details:
- The government had proposed in court a 20-year “formula” for telcos to make staggered payments of the dues.
- However, the court say that the period of 20 years fixed for payment is excessive.
- The October 2019 judgment of the court in the AGR issue originally wanted the telcos to make the repayments in three months.
- The payment dues still amounts to Rs. 1.43 lakh crore.
What is AGR Issue?
- Telecom operators are required to pay licence fee and spectrum charges in the form of ‘revenue share’ to the Centre.
- The revenue amount used to calculate this revenue share is termed as the AGR.
- According to government, the calculations should incorporate all revenues earned by a telecom company, including from non-telecom sources such as deposit interests and sale of assets.
- The companies, however, have been of the view that AGR should comprise the revenues generated from telecom services only and non-telecom revenues should be kept out of it.
- Finally, the Supreme Court upheld the government's definition of adjusted gross revenue (AGR) in October judgment.