AGR risk remains for GAIL, Oil India and Power Grid, says Fitch Ratings

The three non-telecom companies — GAIL (India) Ltd, Oil India Ltd and Power Grid Corporation of India Ltd — are planning to appeal against the Supreme Court’s verdict on the adjusted gross revenue (AGR) issue, according to a brokerage report.

India’s telecom-related regulatory dispute is still event risk for GAIL, OIL and Power Grid, Fitch Ratings said on Wednesday.

The Supreme Court of India has allowed the companies to withdraw their clarification applications on February 14 and resolve their dispute with the Department of Telecommunications outside the court. This is in stark contrast to the court’s decision to demand immediate payments from the telecom companies that are also involved in the dispute, it said.