Tata Teleservices makes provisions to pay DoT

Tata Sons has made provisions of Rs 16,439 crore for its now closed telecom business, according to the annual report of the company for the fiscal ending March 2020. With this, the total amount written off by Tata Sons for its telecom business is now close to Rs 60,000 crore. In December 2019, DoT raised a consolidated demand for Rs 16,612 crores towards license fees, spectrum usage charges, interest, penalty and interest on penalty on TTSL and TTML, following a Supreme Court order. Tata Sons has already paid Rs 2,197 crores against this, according to the annual report.

While Tata Sons’ dividend remained the same at Rs 404 crore as last year, in order to enable Tata Teleservices Limited to discharge its obligations, including operational requirements, Tata Sons infused an additional Rs 7,000 crore into the telecom arm and made provisions of Rs 16,439 crore relating to Tata Teleservices Limited and Tata Teleservices (Maharashtra) Limited.Business Standard