In a major relief for public sector undertakings, the Department of Telecommunications has withdrawn its demand of Rs 4 lakh crore collectively from them, towards Adjusted Gross Revenues (AGR). The move comes a week after the Supreme Cort had asked DoT to review the claims.

The PSU which were slapped the demand by the DoT are GAIL, Oil India, Power Grid, Gujarat Narmada Valley, and Delhi Metro Rail.

Slamming DoT, the apex court last week termed it 'absurd' that PSUs that did not provide telecom services were being asked for AGR.

Addressing the SC in its hearing in the AGR matter, the solicitor general of India said that it has decided to withdraw the AGR demand made to PSUs.

"Since PSUs are not in the business of telecom services, we are withdrawing demands that were made on these companies with respect to Adjusted Gross Revenues" he said

The move comes as a big financial relief for these companies. The biggest claim was of Rs 1.72 lakh crore on GAIL, followed by Rs 48,489 crore on Oil India, Rs 22,066 crore on Power Grid, claim of Rs 15,020 crore on Gujarat Narmada Valley and Rs 5842 crore on Delhi Metro Rail.

First Published:Jun 18, 2020 1:57 PM IST