Hughes India, a subsidiary of US-based satellite broadband company Hughes Network Systems, said that it might have to shut down India operations, since it can not pay the Rs 600 crore it owes the government as part of adjusted gross revenue (AGR) dues, Reuters reported. We have reached out to Hughes India for comment. The company reportedly wrote to Telecom Minister Ravi Shankar Prasad on February 20, saying that it was staring at bankruptcy, and that the Department of Telecommunications (DoT) had made an incorrect calculation of the dues more than a decade ago which has ballooned to $84 million (Rs 600 crore) with interest and penalties. The letter reportedly said that the closure of Hughes India could potentially disrupt connectivity at more than 70,000 banking locations and many critical satellite networks in the Indian navy, army and railways, and added that it was an “SOS request”. Hughes India provides network services to defence, education, and banking sectors in the country, the report said. While Hughes India’s AGR dues are significantly smaller compared to those of Bharti Airtel and Vodafone Idea, it is reportedly thrice the company's net worth in India. SC's AGR verdict: This development comes after the Supreme Court, in October 2019, had ordered telecom companies to include non-core income for calculation of Adjusted Gross Revenue (AGR), and asked them to pay Rs 92,640 crore to the Central government, which includes disputed demand, interest, and penalty. The Supreme Court has already dismissed a review petition filed by telecom…
