AGR collections: Govt sees 125% jump in FY21 revenue mop-up from telecom, driven by AGR collections, spectrum sale

KOLKATA: The authorities expects a whopping 125% leap in income from the telecom sector at Rs 1,33,027.20 crore in FY21 towards Rs 58,989.64 crore earned within the present fiscal yr to March 31, based on finances paperwork.

Market specialists stated the hefty bump-up within the authorities’s income estimates from the telecom business seemingly stems from a mix of upper statutory adjusted gross income (AGR) collections from telcos and a mega spectrum sale in early FY21.

The authorities earns income within the type of primarily licence charges and spectrum utilization costs (SUC) from telecom operators, that are computed primarily based on the AGR of telcos. Telcos yearly pay 8% of their AGR as licence charges, and round 4% in direction of SUC to the federal government.

Following the Supreme Court’s verdict on AGR final October, Vodafone Idea, Bharti Airtel and Tata Teleservices alone owe the federal government Rs 1.02 lakh crore in statutory AGR dues by the use of extra licence charges, spectrum utilization costs (SUC), penalties and curiosity. The nation’s prime courtroom has backed the federal government’s definition of AGR to incorporate non-core gadgets.

Spectrum gross sales by way of auctions although has been the principle contributor to the federal government income. The authorities has stated it plans to carry a mega sale of 4G and 5G airwaves by March-April this yr.

Last December, the Digital Communications Commission (DCC), the best decision-making physique within the Department of Telecommunications (DoT), cleared India’s largest ever spectrum sale seemingly round March-April 2020 that would probably fetch the federal government over Rs 5 lakh-crore if the carriers bid for the whopping 8,300 models of 4G and 5G airwaves on supply.

Revenue from the telecom sector although has been falling since late 2016 as a result of extreme monetary pressures confronted by India’s mobile carriers owing to extended, brutal worth wars, which has meant decrease licence charges and SUC for the federal government.

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Tarun Banerjee

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