Hughes Network Systems may close its local unit due to Rs 600 crore ($84 million) unpaid aggregate gross revenue (AGR) dues, as per reports. Hughes powers multiple banks’ and defence communication systems in India.
Hughes President Partho Banerjee in a letter dated February 20 stated, “We are facing a huge demand…which by no means is serviceable by us and is in fact pushing our company towards bankruptcy and closure.”
In an ‘SOS request’ he also said that the closure would negatively impact connectivity of over 70,000 banking locations and ‘critical satellite networks’ in the Indian navy, army and railways, the report said.
The company claims the Department of Telecommunications (DoT) had “made an incorrect calculation of the dues more than a decade ago which has ballooned to $84 million with interest and penalties.”
Hughes Network Systems is a part of US-based satellite and internet provider group Echostar Corporation. In the banking sector it provides communication services to over 30 public and private entities.
