Tata Sons may seek TCS' help to clear AGR dues: Report

Tata Sons may seek help from Tata Consultancy Services (TCS) if it needs to immediately clear adjusted gross revenues (AGR) dues owed by Tata Teleservices, according to a report by The Economic Times.

The group is working on arranging funds to pay AGR dues worth nearly Rs 14,000 crore owed by Tata Teleservices, the report added.

The Supreme Court is expected to hear modification plea by Vodafone Idea, Bharti Airtel and Tata Teleservices this week for the extension of deadline to pay the AGR dues.

Tata Sons is concerned about the impact of the hefty payment, the report said. “But we are realistic of the importance to have a payment plan in place,” a source told the paper.

Moneycontrol could not independently verify the story.

Tata Sons declined to comment when approached by The Economic Times.

Tata Sons board has discussed the matter and is closely monitoring the capital allocation and return on capital of its subsidiaries, the report added.

“It is an unreasonably huge amount, but we are aware that we have a reputation to protect of paying off every single due owed by group companies,” a source told the publication.

The Department of Telecommunications (DoT) gave telecom players a deadline of January 23 to clear pending AGR dues.

On October 24, the Supreme Court approved an expanded definition of AGR to include revenues from non-telecom sources. This rule applies to any company that has a telecom license even if it does not form the bulk of their business.