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ADJUSTED GROSS revenue (AGR)
What is AGR?
AGR refers to the money on which telecom companies, like Jio, Airtel, and Vodafone Idea, have to pay a share to the government.
Example: If Airtel earns ₹100, the government takes a fixed percentage of it as license fee and spectrum charges.
Why is it important?
AGR is the primary way the government collects revenue from telecom companies.
Example: If Jio pays part of its earnings as AGR, that money helps fund projects like Digital India.
What was the dispute?
Telecom companies argued that only money earned from calling and data services should be counted.
The government said that all earnings, including rent, sale of SIM cards, and ringtones, should be counted.
Example: If Vodafone rented out a tower, should that rent be included in AGR? Telecom said no; the government said yes.
What did the Supreme Court say?
In 2019, the Supreme Court agreed with the government. Telecom companies were required to pay dues, including pending amounts from previous years.
Example: Vodafone Idea had to pay over ₹50,000 crore.
What happened after that?
- Vodafone Idea almost collapsed due to the huge dues.
- Airtel also faced significant financial pressure.
- Jio was less affected, being a newer company.
- The government granted extra time (several years) for payment.
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