Vodafone Has to Pay Rs 55,000 crore
Telecom companies such as Vodafone Idea and Bharti Airtel are in danger of shutting down due to unpaid AGR charges. Watch the video to learn more.
Over the last few months, there have been many rumours about telecom companies like Bharti Airtel, Vodafone Idea, etc maybe shutting down. Why so? Well there is a big fight between the Central Government & telecom companies. This is because telecom companies have to pay the Central Government. But right now the telecom companies do not have the money to pay the government. The Telecom companies have to pay the government AGR (Adjusted Gross Revenue). What does this mean, well in simple words it means that the companies have to pay the government license fees, tax, spectrum fees, etc. Now the main problem is the way the government has calculated the AGR. The telecom companies do not agree with the government’s methods. This disagreement has been going on since 2005. Telecom companies have filed a case many times against the government. The case is now in the Supreme Court.
In the SC latest decision, the judges announced their decision and ordered the telecom companies to pay all the money they owe to the government as soon as possible. This amount that the companies have to pay is huge. The total amount all the companies have to pay is Rs 1.5 lakh crore. The biggest issue here is that telecom companies do not have this money.This is because the telecom industry is suffering many losses and the profits are very less.Vodafone has to pay Rs 55,000 crore to the government. This includes penalties, interest, etc. Vodafone’s lawyers have clearly said that, if Vodafone has to pay the entire amount by selling assets, etc then the company will have to shut down in India. Bharti Airtel has to pay a total of Rs 35,000 crore. They have paid rs 10,000 crore and will pay the rest after an internal financial assessment of the company.
This amount is a very big amount. If companies are forced to pay, they may shut down. What happens if big companies like Vodafone shut down? If there are only 1 or 2 telecom companies in the market, then lakhs of people will lose their jobs and the price of calls and internet will shoot up because. We all need to stay connected. If only 1 or 2 companies are left they will take advantage of this necessity and hike the prices. People will have no choice but to pay the amount.Another point to remember is that, The Indian economy is already in a mess. If such big huge companies begin to shut down, it can dangerously affect the economy. There is no clear answer about what will happen now. Companies are hoping that the government will come to some agreement.Now the next SC hearing is on 17th March we will all have to wait to see what the future is for these companies.
