Gail (India) rose 0.96% to Rs 130.85 after the company filed an application with Supreme Court seeking clarification on the provisional assessment orders received from the Department of Telecommunication (DoT).
In an exchange filing made after market hours yesterday, the company said that it had received provisional assessment orders towards annual license fees in respect of IP-II license for several financial years from the Office of Controller of Communication Accounts, DoT, Ministry of Communications, Government of India.
Infrastructure provider category- I (IP-I) are those infrastructure providers who provide assets such as dark fibre, right of way, duct space and towers to the licensees of telecom services.
GAIL reportedly has a vast network of gas pipelines and it laid optic fibre along it to provide bandwidth to third parties. Issuance of IP-II licence was reportedly discontinued in December 2005.
DoT had submitted an allegedly total outstanding amount of Rs 1,83,076 crore including interests and penalty computed on the entire revenues of the company, which were refuted by the company being an unrelated matter to the terms & conditions of the license.
Gail said that based on the legal opinion sought in this regard and facts of the case, the amount assessed in provisional assessment orders are legally not tenable. In this regard, the company has filed an application with Supreme Court on 23 January 2020 for seeking clarification of the judgment passed.
GAIL India processes and distributes natural gas and liquefied petroleum gas. Government of India held 52.13% stake in the company as on 31 December 2019.
On a consolidated basis, the company reported 34.7% decline in net profit to Rs 1167.07crore on a 5.7% fall in net sales to Rs 18235.45 crore in Q2 September 2019 over Q2 September 2018.
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