The Supreme Court hearing on AGR dues next week would be keenly watched not only by the telecom operators but also the government, which is working on a relief package for them that may include more time to pay their dues.

Sources said the government would hear out the observations of the court on March 17 before deciding on a bailout. They, however, said any relief would be for the industry as a whole and not company-specific. Also, the final call would be taken by the cabinet.

The sources said the package could include an extension of the timeframe to pay the dues on adjusted gross revenues (AGR) that the operators owe the government.

The package will take a comprehensive view of the sector, keeping in mind the government’s ambitious plans for 5G.

On licence fees, the government might follow the recommendations of Trai and lower the interest rate, which currently stands at 8 per cent.

The government might also work on the self-assessed amount of the operators as there was a massive difference between the AGR dues mentioned by the DoT and the operators. The government may also review the base price for spectrum in the future, the sources said.

The Digital Communications Commission (DCC), the inter-ministerial panel of the telecom ministry, could come out with different options but the decision has to be taken at the cabinet level, they said.

The commission held an inconclusive meeting as they required more data for the reconciliation of AGR numbers.

The Cellular Operators Association of India (COAI) has urged the government to institute a minimum price for mobile services starting April 1, and reduce the licence fee and spectrum usage charges.

It has requested that GST credits lying with the government worth Rs 40,000 crore be adjusted against the dues payable by the operators. It has requested that after this adjustment, the payment of balance amount of interest, penalty, and interest on penalty be allowed in a staggered manner.

“It is requested that a moratorium of three years be provided, as we expect that it will take at least that much time to recover the health of the sector, followed by payment tenure of 15 years at a simple interest of 6 per cent,” the COAI has said in its letter.

The government may also consider granting loans equivalent to the AGR amount at 6 per cent interest so that dues can be paid immediately, the industry body said.

In all, 15 telecom entities owe the government Rs 1.47 lakh crore in unpaid statutory dues Ä Rs 92,642 crore in unpaid licence fee and another Rs 55,054 crore in outstanding spectrum usage charges. Of the estimated dues that include interest and penalty for late payments, Airtel and Vodafone Idea account for about 60 per cent.