The government is evaluating a proposal to waive telecom companies’ adjusted gross revenue (AGR) dues, though no final decision has been made, finance secretary Tuhin Kanta Pandey hinted on the sidelines of CNBC-TV18’s post-budget special, Budget 2025 – The Verdict, on Monday, February 3.When asked whether the finance ministry was considering further relief on AGR dues, Pandey remained non-committal. “You will come to know when it comes,” he said.Pressed on whether the issue was under active discussion, he added, “No. I mean, I think this has been under discussion, because unless and until it is decided, you know, it’s not decided. It has to be decided. I think that much for today. That much.”
The AGR dues issue has been a long-standing concern for telecom operators, who have sought relief from significant liabilities. While the government has previously extended some concessions, Pandey’s comments suggest discussions are ongoing, though a final resolution remains uncertain.Earlier, on February 1, union minister for communications Jyotiraditya Scindia declined to comment on reports suggesting the government is considering a ₹1 lakh crore waiver of AGR dues. Responding to queries after the Union Budget 2025 was presented on Saturday, he told CNBC-TV18, “I am not aware of any such reports.”When pressed further on whether the government was considering waiving 50% of the interest and 100% of the penalty and interest on penalties, Scindia refused to elaborate. “I will not comment. You will hear from me when it happens and if it happens. The Supreme Court has passed a judgment, and that stands,” he said.Over the past few weeks, reports have suggested that the government is considering waiving a significant portion of the dues levied on companies such as Vodafone Idea and Bharti Airtel following the Supreme Court’s 2019 ruling.Last September, the Supreme Court dismissed curative petitions filed by telecom companies challenging the 2019 order, which directed them to pay over ₹1 lakh crore in AGR dues to the Department of Telecommunications.Sources indicate that while a proposal for relief is under consideration, the government is exploring legal options to determine the best course of action. A final decision is still awaited.Meanwhile, Scindia also told CNBC-TV18 that a large-scale asset monetisation exercise is underway at Mahanagar Telephone Nigam Limited (MTNL), which will be used to service its debt.ALSO READ: Budget 2025 | Government allocates ₹95,298 crore to Telecom & IT sectors(Edited by : Priyanka Deshpande)
