Hughes Network will clear AGR dues, won’t shut shop

Kolkata: US satellite communications provider Hughes Network Systems has no plans to shut its Indian arm, Hughes Communications India Pvt Ltd (HCIPL), and will clear its adjusted gross revenue (AGR) dues to prevent any disruption or job losses of its in-country operation, a top official said.

“With regards to AGR dues, we are looking to fully comply with the orders (of the Supreme Court) and intend to settle all dues…our in-country services will not be disrupted in any manner during or subsequent to the process,’’ Pranav Roach, president, Hughes Network Systems India Pvt Ltd, holding company of HCIPL, told ET in response to a detailed emailed questionnaire.



The Department of Telecommunications (DoT) has estimated Hughes’ AGR dues at around $84 million (Rs 600 crore). People aware of developments said Hughes has concluded self-assessments of its dues — which could peg liabilities at lower than government estimates — and is hopeful of resolving the matter with the telecom department shortly.

Roach was trying to allay fears sparked off by a letter reportedly sent by HCIPL to DoT, claiming the company would go bankrupt and be forced to shut down if compelled to fork out the $84 million AGR dues to the government.

Last October, the Supreme Court ruled that AGR should include non-core items, which left 15 telecom companies, including HCIPL, collectively facing AGR dues of around Rs 1.64 lakh crore.

Hughes was among companies that filed a review petition against the order that has since been rejected. Hughes then joined the likes of Bharti Airtel, Vodafone and Tata Teleservices in filing a modification of the October 24 court order and asked for permission to negotiate with the DoT for more time to pay their dues.

Hearing the plea earlier this month, the court directed all companies to pay up dues by next date of hearing, which is March 17.



The top Hughes executive said “the company is committed to India and to continue operations as a good corporate citizen,” adding that it also remains committed to “its employees, customers and stakeholders” and would continue providing quality communications and technology services in India.

HCIPL has 200-odd employees and delivers satcom services and satellite broadband connectivity to multiple industry sectors, including banking & finance, education, oil & gas, FMCG and defence verticals.