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Our AGR dues are nil: MTNL chairman
Millennium Telecom, a wholly owned subsidiary of MTNL, a category 'A' licencee of DOT for providing Internet services throughout India, comes within AGR rulings of Supreme Court. The MTNL Chairman however denying any AGR liability.
State run MTNL does not have any liability pending on account of the AGR revenues unpaid to the Department of Telecom (DoT)as it operates through a separate subsidiary and its mobile service dues have already been paid under the AGR.
"From our side it (AGR dues) is nil, it should be up to Rs 200 to Rs 300 crore if at all it is there. We have a wholly owned subsidiary -- Millennium Telecom-- through which we do the system integration activities all over India. The revenues out of this is non - AGR since it is a separate company. Nothing is pending on our AGR amount post Supreme Court order on the mobile services side . If at all, it will be Rs 200-300 crore and we will explain in our communications to DoT that it is not there and all have been paid", Sunil Kumar CMD, MTNL told IANS.
MTNL shares were down3.91 per cent at Rs 8.60 on the BSE.
Millennium Telecom Limited, a wholly owned subsidiary of MTNL, was set up in 2000. The Company obtained a category 'A' licence from the DoT for providing Internet services throughout India.
In a big blow for the telcos, the Supreme Court backed DoT definition of AGR. The apex court ruled that AGR should include all revenue accrued to carriers. It ruled that the adjusted gross revenue (AGR) for telcos should include all revenue accrued to carriers, including that from non-core activities, thus backing the Telecom Department's stance in a 16-year-old case.
The amount which now stands provisionally at Rs 1.47 lakh crore is hard hitting Airtel and Vodafone Idea, who have to share their revenues for all their non-core activities with the government accumulated over the last 16 years.
MTNL has reported a reduction of its loss to Rs 949 crore in the quarter ended September 30, 2019 (Q2) from Rs 1053 crore in Q1. Its revenue has declined to Rs 369.32 crore in Q2 from 412.35 crore in Q1. It has a market cap of Rs 543.69 crore. It is part of the BSE small cap index. Government of India holds 56.25 per cent and LIC holds 14.33 per cent.
The PSU which operates in Delhi and Mumbai has a merger pending with BSNL and is currently under a VRS exercise where its target has already been crossed. Out of 18,200, already 14,000 have opted for it and very soon the PSU will be left with 4,000 people which is expected to boost its profitability.
MTNL currently has a negative net worth and cash flow.