GAIL, Oil India & Power Grid caught off guard on AGR dues

ET Intelligence Group: The Supreme Court’s directive to telecom service providers to pay the pending dues pertaining to the underpaid licence fees and associated penalties and interest could adversely impact the non-telecom companies including GAILNSE 0.85 %, Oil IndiaNSE 0.23 %, and Power GridNSE 1.02 % Corporation.

This is because a small portion of revenues (under 2 per cent) of these companies comes from the optical fibre cable (OFC), which these companies have laid across their gas and power distribution networks. However, according to the Supreme Court’s decision regarding the adjusted gross revenue (AGR) does not distinguish between telecom and non-telecom companies and considers entire revenue of the companies for the calculation of the penalties.