Select PSUs rally as Govt to withdraw 96% of AGR dues

Shares of four public sector undertakings (PSUs) rose 1% to 3% after the government withdrew telecom dues demand from the PSU firms.

Gujarat Narmada Valley Fertilizers & Chemicals (up 3.27%), Power Grid Corporation of India (up 3.26%), Oil India (up 2.99%) and GAIL India (up 1.04%) edged higher.

The media reported that the government on Thursday informed the Supreme Court it is willing to withdraw 96% of the Rs 4 lakh crore dues pending against various PSUs in the adjusted gross revenue (AGR) matter.

Solicitor General Tushar Mehta told a bench comprising Justices Arun Mishra, Abdul Nazeer and M R Shah that "We have taken a decision since they are not in the business of providing tele services to general public, we are withdrawing the dues from these PSU's 96% demand now stands withdrawn."

Last week the apex court had pulled up the Department of Telecommunication (DoT) for raising a demand of Rs 4 lakh crore from various PSUs in the garb of its last year judgement on adjusted gross revenue (AGR) matter and threatened to begin contempt proceedings against the officers concerned.

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