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DoT Asks GAIL To Pay Up Dues

DoT sent a letter to GAIL last month seeking Rs 1,72,655 crore in dues on IP-1 and IP-2 licences as well as internet service provider (ISP) licence.

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The department of telecommunications (DoT) has sought Rs 1.72 lakh crore in past statutory dues from state-owned gas utility GAIL India Ltd following the Supreme Court’s ruling on revenues that need to be taken into consideration for the payment of government dues.

Sources said DoT sent a letter to GAIL last month seeking Rs 1,72,655 crore in dues on IP-1 and IP-2 licences as well as internet service provider (ISP) licence.

In response, GAIL has told DoT that it owes nothing more than what it has already paid to the government.

The firm told DoT that it had obtained ISP licence in 2002 for a period of 15 years, which expired in 2017. But GAIL never did any business under the licence and as no revenue was generated it cannot pay any amount.

On IP-1 and IP-2 licences, GAIL has told DoT that it generated Rs 35 crore of revenue since 2001-02 and not Rs 2,49,788 crore that has been considered for levying past dues, they said.

Sources said the dues being sought are more than three times the net worth of GAIL and several times the actual revenue earned.

The Supreme Court had on October 24 ruled that non-telecom revenues earned by firms using spectrum or airwaves allocated by the government will be considered for calculating statutory dues.

(PTI)


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