Budget data suggests some AGR dues payment likely in FY20: Goldman Sachs

Budget data suggests that government may be expecting to receive the principal portion of statutory liability from telecom firms in the current financial year itself, Goldman Sachs said on Monday.

In its latest sector report, Goldman Sachs noted that government has revised upwards expected proceeds in FY20 from ‘Other Communication Services’, and added that part of that could be attributed to recurring license fee/spectrum charges and deferred payment liability, an estimated $ 2.9 billion (roughly Rs 20,700 crore) are likely from other avenues.

“We note that this $ 2.9 billion is roughly equivalent to the principal-only component of Bharti and Vodafone Idea’s combined AGR-related liability,” it said.

The government on Saturday more than doubled its revenue estimate from the debt-ridden telecom sector to Rs 1.33 trillion for 2020-21 mainly on account of statutory dues derived from adjusted gross revenue (AGR).