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GAIL consults other PSUs on how to deal with claims for AGR dues

GAIL India received a fresh demand from the government on telecom dues after the latest ruling by the Supreme Court earlier this month on the adjusted gross revenue (AGR) issue. The fresh demand is much less than the original Rs 1.83 lakh crore and is for just one year, said chairman Manoj Jain.

ET Bureau|
Last Updated: Feb 25, 2020, 07.13 AM IST
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New Delhi: GAIL is discussing with other state-run firms on how to deal with the government’s demand for telecom fee, and is yet to take a final call, chairman Manoj Jain has said.

GAIL received a fresh demand from the government on telecom dues after the latest ruling by the Supreme Court earlier this month on the adjusted gross revenue (AGR) issue. The fresh demand is much less than the original Rs 1.83 lakh crore and is for just one year, Jain said, without elaborating.

“We are hoping that we will not have to pay,” Jain said.

GAIL has already written to the Department of Telecommunications that all that was due has already been paid but is still looking for ways to deal with the government demand.

“Since there is already a demand, which is pending, we are working on various options on what could be the best thing for us,” Jain said, adding that approaching TDSAT could be one option while the other could be some dispute redressal mechanism for state firms.

GAIL is in talks with other staterun firms such as Power Grid and Oil India on this, hoping to forge a common response.

GAIL has not requested the government for an exemption in this regard but is hopeful that a positive resolution to the matter can come about with time.

“The fact that honourable Supreme Court has allowed us to withdraw gives a boost to our view that our case is different from these telcos,” said Jain.

GAIL and other state firms used their telecom licenses mostly for internal purposes, gaining very little in revenue from its commercial exploitation but are now faced with massive demand from the government.

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