DoT waives Vodafone Idea's bank guarantee for spectrum auctions from 2012 to 2021
Mumbai: Chash-strapped telecom company Vodafone Idea has received a waiver of bank guarantee requirements for spectrum auctions conducted in 2012, 2014, 2016, and 2021 from Department of Telecommunication (DoT), the company informed stock exchanges on Saturday.
“Recently, the Department of Telecommunication further extended its support to the telecom industry by dispensing with the requirement of bank guarantee to be submitted for spectrum auctions held prior to reform package, that is for spectrum auctions of 2012, 2014, 2015, 2016 and 2021,” it stated in a notification to the BSE, Financial Express reported.
The waiver is applicable only if the pro-rated value of the spectrum used from the allocation date until three months after the due date of the next installment payment is less than the payment value made by the telecom operator on a net present value basis, the company explained.
Under the 2021 telecom reform package, no bank guarantees were required for spectrum auctions held after the reforms.
Before this waiver, Vodafone Idea was required to furnish bank guarantees amounting to Rs 24,800 crore for the auctions mentioned.
The company also noted ongoing discussions with the Department of Telecommunications (DoT) to finalise the partial shortfall amount for the 2015 auction.
“This step will ensure that exposure of the banking system is utilised by telcos towards proliferation of 4G and 5G networks in India,” Vodafone Idea added.
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