What is AGR? Everything you need to know as SC rejects telcos' plea for AGR re-calculation

AGR Dues Case: The Supreme Court of India rejected telecommunication companies' petition on Thursday seeking a recomputation of adjusted gross revenues (AGRs).

Vodafone Idea, Bharti Airtel and other telcos had filed a curation plea in the top court. They alleged that there is a error in the calculation of dues by the Department of Telecommunication.

What is AGR? All you need to know

Adjusted gross revenue (AGR) is a metric used to determine the revenue that telecom operators must share with the government in the form of spectrum usage charges or licensing charges. Under this mechanism, telecoms are required to share a percentage of AGR with the Department of Telecommunications.

AGR case: What is the dispute?

The dispute between telecom operators and the government concerns the definition of AGR. Telcos argue that only core business revenue should be considered, while the government contends that AGR includes all revenue, including from non-telecom services.

In the October 2019 verdict, the Supreme Court ruled in favour of the government and said that non-core business revenue must be included in the AGR. This development increased the burden on Vodafone Idea and Bharti Airtel, taking their liabilities to more than ₹90,000 crore.

As of the financial year 2023-24, VI's AGR dues increased to ₹70,320 crore (including interest). Bharti Airtel owes ₹44,000 crore.