THE GIST of Editorial for UPSC Exams : 13 June 2020 (A welcome waiver (Indian Express))

A welcome waiver (Indian Express)

Mains Paper 2: Polity
Prelims level: Adjusted gross revenue
Mains level: Highlights of the Supreme Court’s ruling on adjusted gross revenue for non telcos companies

Context:

In a major relief for non-telecom public sector enterprises, the Supreme Court, on Thursday, came down heavily on the Department of Telecommunications for issuing them demand notices for payment of dues related to the adjusted gross revenue (AGR) issue.
Terming the move as a misuse of its.....................................................

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What do you mean by Adjusted Gross Revenue?

Adjusted Gross Revenue (AGR) is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT). The contention is on the particulars considered to calculate the amount payable.

Uncertainty among telephone operators:

However, there continues to be uncertainty on the issue of payment of AGR dues by telecom operators such as Bharti and Vodafone.
While the Court has taken cognisance of the telcos’ plea of allowing them to repay their dues over a period, it remains sceptical of the 20-year time horizon.
Court has directed them to file a ....................................

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Ambiguity over AGR:

Previously, the court had sided with the government on the issue of what constitutes AGR.
Telcos were of the opinion that only revenue from telecom services should be included in the assessment of AGR and not revenues from non-telecom activities like interest income and rent.
The government’s continued reluctance to reconsider its approach has been short-sighted, to say the least.
Given the ambiguity over the definition, at the very least it could have withdrawn its demand on collecting penalties, and interest on penalties.
How the government resolves this issue remains to be seen. But, so far, its handling of the situation leaves much to be desired.
Timely intervention could have helped alleviate the pain.

Conclusion:

At this critical juncture, rather than be driven by short-term revenue considerations, the government should consider the long-term implications of its moves on the telecom sector.
The lingering uncertainty is in no one’s interest.
Supreme Court order on AGR issue brings relief to non-telcos. But for telcos, uncertainty continues.
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Prelims Questions:

Q1. Which of the following are the new coal mines opened by the Coal India Subsidiary Western Coalfields Ltd (WCL)?
1. Adasa Mine
2. Sharda underground Mine
3. Dhankasa underground Mine

Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 only
(c) 1, 2 and 3
(d) 2 and 3 only