Tata Tele opts for 4-year AGR payment moratorium

Tata Teleservices Friday said it has opted to avail of the four-year moratorium on adjusted gross revenue (AGR) payments.

“With reference to the notification dated October 14, 2021, issued by the Department of Telecommunications (“DoT”) to the company, we wish to inform you that the company has confirmed to avail the option for deferment of AGR related dues by a period of four years with immediate effect,” the Tata group company said in a notice to the exchanges.

Tata Teleservices has AGR dues of Rs 16,798 crore of which it has paid Rs 4,197 crore.

The company is yet to confirm the option to convert the interest accruing due to the deferred payments of AGR and spectrum into government equity.

“The other option offered in the aforesaid notification by DoT shall be considered by the Company within the stipulated timelines,” it added. Telcos have 90 days to exercise the equity conversion option.

The company’s stock closed 1.5% lower at Rs52.55 on the BSE.