PSUS ASKED TO MAKE IMMEDIATE PAYMENT

While the road for public sector companies that hold telecom licences for their own network use is unclear, the telecom department letter, issued following the Supreme Court’s order, has been sent to them as well.

Even as the road for public sector companies that hold telecom licence primarily for their own network use is unclear, a letter by the telecom department, issued following Friday’s Supreme Court (SC) order, has been sent to them as well. Some firms like Oil India (OIL) are expected to restart the legal process soon.

And, any outgo from these firms could not only wipe out their surplus, but create distress in other sectors also. The department of telecommunications (DOT) on Friday asked the telecom service providers and licencees to make payment in accordance with the SC’S ruling. It had earlier slapped a demand notice on Oil India, seeking ~48,000 crore on account of adjusted gross revenue (AGR) dues.

OIL’S notices are for 2007-08 to 2018-19, and the ~48,000 crore includes licence fee, penalties and interest. OIL had taken up the matter with the DOT and the ministry of petroleum and natural gas along with other affected central public sector enterprises, and added that the AGR does not apply to nontelecom companies. OIL and other PSUS had filed clarificatory/modificatory petition before the SC. These firms own and operate telecom networks, but they do not provide telecom services.