|
|
|
Telcos may default on spectrum auction dues over AGR payment
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 18 Feb, 2020
The new stress that could now
emerge for government and banks despite winning the AGR battle against
the telcos in the Supreme Court is the strong possibility of telecom
companies defaulting on last spectrum auction dues payment to the tune
of Rs 90,000 crore, analyst firm Motilal Oswal has said.
"Ironically,
the government, despite winning the suit, could see the biggest impact
through deferred spectrum debt default of Rs 900 billion", broking firm
Motilal Oswal said in a report.
Earlier this month, Department
of telecom (DoT) amended license to defer payments of the spectrum
auction instalments due for 2020-21 and 2021-22, operationalising the
committee of secretaries' decision to allow a two-year moratorium as
decided by the Committee of Secretaries headed by Cabinet Secretary
Rajeev Gauba.
The Supreme Court on Monday rejected Vodafone
Idea's appeal to direct the telecom department not to invoke its bank
guarantees for recovering adjusted gross revenue (AGR) - related dues,
leaving the beleaguered telco on the brink of a possible collapse.
This
now leaves DoT to raise demand notice. Total AGR liability by telcos
stands at Rs 1,470 billion, of which Bharti/VIL need to pay Rs 340
billion and Rs 440 billion, it said.
"This could have
far-reaching serious ramifications on the telecom and banking sectors
with ripple effects on the overall economy, as VIL faces a risk of
shutdown with largescale debt default (Rs 1 trillion), job losses and
subscriber churn/annoyance.
Ironically, the government, despite
winning the suit, could see the biggest impact through deferred spectrum
debt default of Rs 900 billion, Motilal Oswal report noted.
Bharti
though appears well placed with its recent fund raise. A duopoly market
will likely benefit it (along with RJio) with incremental EBITDA
potential of Rs 100 billion in FY22 even after building in network cost
increase with blue-sky EBITDA of Rs 550 billion, it added.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|