SC unlikely to allow 20 yrs for payment of telco dues: Brokerage

Telecom companies such as Vodafone Idea Ltd may find it tough to furnish personal guarantees as suggested by the Supreme Court as an assurance for clearing all AGR dues over a 20 year period, a brokerage said on Thursday.

The Supreme Court on Thursday agreed to consider a Government plan of payment of Rs 93,520 crore of balance dues by Vodafone Idea, Bharti Airtel and other telcos over 20 years.

It, however, sought to know what guarantees can be sought to ensure telecom companies abide to a timeframe and payment schedule it decides.

“The apex court has asked private telcos to provide for security and payment roadmap in an attempt to allow telcos to repay AGR dues over a 20 year period,” SBI Cap Securities said in its comments on the court order.

It said a holistic picture needs to seen as telcos have to invest in the network to repay both AGR and outstanding spectrum dues.