InvestorQ : Do you see the PSU stocks like GAIL, REC and Oil India gaining from the Supreme Court order on AGR dues for telecom?
diksha shah made post

Do you see the PSU stocks like GAIL, REC and Oil India gaining from the Supreme Court order on AGR dues for telecom?

Answer
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sara Kunju answered.
3 months ago


There seems to be some relief for the PSUs that had been allotted spectrum but were never in the telecom business. After the Supreme Court pulled up the DOT for putting such a huge and unwarranted claim on the non-telecom PSUs, the government of India has confirmed to the Supreme Court that 96% of the AGR demand made to the non-telecom PSUs like GAIL, REC and Oil India had been withdrawn. But, government and telecom companies still needed to sit with DOT and work out a time table for payment of AGR charges in a staggered manner. So the telecom AGR liability stays for the telecom companies but non-telecom PSUs like GAIL, REC, Oil India and others do not have much to worry about. That should have a positive impact on these stocks.