Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC) said India’s telecom ministry has asked it to pay Rs 15,200 crore ($2.1 billion) in overdue fees by January 23. The company will seek legal advice in the matter, which pertains to licenses for satellite phones and internet services which held between 2005 to 2019, according to its exchange filing.
The amount sought is 20 times Gujarat Narmada’s Rs 740 crore net profits for the year ended March 2019. The government, which has already exceeded its budget deficit target, has been asking companies with telecom licenses to pay dues after the nation’s Supreme Court said it can take into account firms entire revenue for calculating licensing fees.
GAIL India is also facing a Rs 1.7 lakh crore, according to media reported on December 22 without saying where it got the information. Vodafone Group PI’s India venture, which needs to pay $4 billion to the telecom ministry, in December said it will cease operations if it doesn’t get government support. Gujarat Narmada is a joint venture by the government of Gujarat and the Gujarat State Fertilizers & Chemicals Ltd., according to its website.
Read EquityPandit’s Nifty Outlook for the Week