Govt detaches GAIL & OIL India from AGR case
Petrochemical

Govt detaches GAIL & OIL India from AGR case

The Department of Telecommunications had sought Rs 1.83 lakh crore from GAIL and Rs 48,489 crore from OIL by including their revenues from oil and gas business in calculating dues

  • By ICN Bureau | March 05, 2020
The Department of Telecommunications had sought Rs 1.83 lakh crore from GAIL and Rs 48,489 crore from OIL by including their revenues from oil and gas business in calculating dues. 
 
The government has detached gas utility GAIL India, explorer Oil India and other PSUs from a Supreme Court order that had led to Rs 1.47 lakh crore being sought from telecom firms such as Bharti Airtel and Vodafone Idea in past dues, the Lok Sabha was informed.
 
Following the October 24 order of the Supreme Court asking inclusion of non-telecom revenues for calculating statutory dues such as license fee and spectrum charges of telecom firms, the Department of Telecommunications has sought a cumulative Rs 2.7 lakh crore from GAIL and other non-telecom PSUs.
 
The demand was challenged by state-owned firms. "Supreme Court has detached the public sector undertakings (PSUs) from the AGR judgment dated October 24, 2019, and directed them to seek relief from an appropriate forum," MoS Communications Sanjay Dhotre said in a written reply to a question in the Lower House of Parliament.
 
The DoT had sought Rs 1.83 lakh crore from GAIL and Rs 48,489 crore from OIL by including their revenues from oil and gas business in calculating dues for leasing out surplus bandwidth capacity to third parties.
 
Power Grid Corp was slapped with Rs 21,953.65 crore liability and Gujarat Narmada Valley Fertilizers & Chemicals Ltd faced Rs 15,019.97 crore demand. RailTel and Delhi Metro too faced similar demands. "Public sector undertakings such as GAIL, Oil India, etc represented to Department of Telecom that the AGR judgment is not applicable on them and therefore they do not owe any dues to the Department of Telecom," Dhotre said.
 
OIL, the nation's second-biggest state-owned oil producer, holds a National Long Distance Service Licence (NLD) with primary objective of monitoring and operation of its pipeline network.
 
The surplus bandwidth capacity available with the company was leased out to the telecom operators/other users, on which the company regularly paid the applicable license fee to the telecom department (DoT).
 
But, after the October 24 Supreme Court ruling for including non-telecom revenues for calculating dues, the DoT included all revenues from oil and gas to seek Rs 48,489 crore from the company for the period from 2007-08 to 2018-19.
 
In case of GAIL, which held a IP-II licence, the DoT assessed Rs 1,83,076 crore as outstanding after including interest and penalty computed on the entire revenue of the company. PowerGrid, which holds NLD and Internet Service Provider (ISP) licences, was asked to pay Rs 21,953.65 crore (including interest and penalty) for FY 2012-13 to FY 2017-18 by adding revenue related to power transmission and consultancy as 'miscellaneous income' in adjusted gross revenue, company sources said, adding the firm will approach the TDSAT in next few days.
 
Gujarat Narmada Valley Fertilizers & Chemicals Ltd, which had a Very Small Aperture Terminal (VSAT) and a Category 'A' ISP, was asked to pay Rs 15,019.97 crore for the financial year 2005-06 to 2018-19.
 
Source: PTI

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