Debt-ridden telecom operator Vodafone Idea on Tuesday said it has been in talks with the Department of Telecommunications for waiver of bank guarantee that the company has to submit a year before the payment deadline for spectrum acquired before 2022.
The Department of Telecommunications (DoT) has asked the telco to submit bank guarantees as security for the spectrum payment of Rs 24,747 crore due in September next year.
As per rules, bank guarantees must be submitted at least one year before the payment due date.
“The company has made detailed representations to the DoT and continues to engage with the DoT to remove bank guarantee requirements for spectrum acquired before 2022. This is also a demand from the industry,” Vodafone Idea (VIL) said in a filing regulatory.
According to sources, the Department of Technology has also approached the Finance Ministry on the issue of granting telcos an exemption from submitting bank guarantees for payment of spectrum dues.
VIL has sought relief citing the spectrum auction rules of 2022 and 2024, under which the requirement of providing bank guarantees for annual dues has been removed.
VIL earlier settled an interest liability of Rs 16,000 crore on the deferred payment and offered shares in the company to the government. The government owns about 23 percent of VIL shares.
VIL has also approached the government seeking relief on Adjusted Gross Revenue (AGR) dues of Rs 70,000 crore after the Supreme Court rejected its curative petition for correction in calculation of statutory dues and exemption from the fine and interest thereof.
VIL’s payment obligation to the government stood at Rs 2,09,520 crore as on June 30, 2024, including deferred spectrum payment obligations of Rs 1,39,200 crore and AGR liability of Rs 70,320 crore.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.