Vi proposal to govt seeks recalculation of AGR

DoT considering all options, decision before year-end

- GULVEEN AULAKH

Vodafone Idea (Vi) is learnt to have shared a proposal with the department of telecommunications (DoT) seeking recalculation of the adjusted gross revenue (AGR) by removal of arithmetical errors and duplication in computation of the dues besides a onetime waiver of penalties and interest on penalties, totalling to ₹45,000-50,000 crore.

“The recalculation of dues by removing errors and omitting duplications could reduce the liability by nearly half, which would mean that the interest would then become serviceable by the company’s own finances,” said one of the sources. “This will enable Vi to raise funding from banking as well as non-banking finance avenues,” the source added. The company’s planned ₹25,000 crore funding exercise is integral to the company’s ₹50,000-55,000 crore capex plan for launching 5G services required for the company to remain competitive.

“Exercise of recalculation of AGR at the circle levels has already begun,” a second source said, asking not to be identified.