AGR (a.k.a Adjusted Gross Revenue) which under the revised rules of the government, the telecom industry had to share a part of their adjusted gross revenue with the government and it includes the license fees and spectrum usage charges. The rules are clear in reading but there is a dispute wedged over it causing all the turmoil. The definition of AGR isn’t clearly stated causing all the confusion. According to the DoT (Department of telecommunication) the definition of AGR include the earning from the telecom and non-telecom operating service of the company.
14th February 2020 was not that dreamy to the telecom industry as they faced a sudden doomsday situation due to the supreme court session, which escalated the payment of AGR dues. Airtel sent a letter to the DoT and promised to clear off the total debt of 21,682 crores by march 17 2020, And paid a sum of 10,000 crores on Saturday. Vodafone Idea has a total debt of around 53,000 crores of which 2500 crores has been cleared, and reliance telecommunication owes a total of 16,456 crores.
All this due clearance to the telecom industry has taken a huge toll on the stock prices of the companies.
