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DoT asks PSUs like GAIL and Power Grid to pay AGR dues: Report

DoT has reportedly started to fresh notices to these companies to comply with the Supreme Court order.

November 26, 2019 / 03:40 PM IST
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Like private telecom players, some state-run non-telecom companies too may have to adjusted gross revenue (AGR) dues, estimated at over Rs 2 lakh crore, according to a report in Financial Express.

The companies include GAIL, Power Grid Corporation and Delhi Metro. For all these companies, telecom was only a small part of their business.

In each of the three instances, the companies' internal calculations of AGR is lower than the Department of Telecommunication's final calculation.

In October, the Supreme Court upheld the DoT's definition of AGR, which will force telecom players to pay as much as Rs 92,642 crore as dues. The move has hurt private telecom companies Vodafone Idea and Bharti Airtel.

Moneycontrol could not independently verify the story.


Also read - Explainer: SC's decision on adjusted gross revenue to lead to Rs 92,000 crore hit for telcos

AGR is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).

GAIL’S internal committee had estimated AGR at Rs 1.76 lakh crore, but the telecom regulator has pegged AGR dues at Rs 2.5 lakh crore after adding revenue from non-telecom sources. The company had earned only Rs 35 crore as revenue from its telecom business since 2001-02.

Power Grid, which had an internet license, has calculated its AGR since 2006-07 at Rs 3,566 crore, while the DoT’s final estimate is Rs 22,168 crore, the Financial Express reports.

The DoT has asked Delhi Metro to pay AGR dues of Rs 5,482 crore. The company had estimated AGR based on revenue of Rs 4.7 crore, which the DoT raised to Rs 33,005 crore.

The DoT has sent notices to the PSUs, requesting them to comply with the Supreme Court order and pay the license and other dues.

The state-run companies have not yet approached DoT for a clarification, the report said.
Moneycontrol News
first published: Nov 26, 2019 03:38 pm

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