Cabinet waives bank guarantee requirement for spectrum purchased in past auctions

The Union Cabinet has waived the request to taxable slope guarantees for spectrum purchased done auctions held earlier 2022, according to sources.

The determination brings immense alleviation to debt-ridden Vodafone Idea arsenic it already crossed the timeline to taxable Rs 24,746.9 crore slope warrant for spectrum outgo coming up betwixt October 2025 and September 2026.

The determination volition besides supply alleviation to Bharti Airtel and Reliance Jio who person bought radiowaves done assorted auctions that were held earlier 2022.

"Cabinet has waived the request of slope guarantees arsenic per the alleviation sought by telcos," a root said.

As portion of telecom reforms announced successful September 2021, the authorities has already waived the request of depositing slope guarantees for spectrum purchased done auctions.

Vodafone Idea CEO Akshaya Moondra successful the company's earning telephone had said the slope guarantees volition interaction the company's quality to question indebtedness facilities from the banks which the steadfast requires for concern successful networks.

Reeling nether indebtedness of Rs 2.22 lakh crore, VIL (Vodafone Idea Ltd) has announced a full concern of Rs 55,000 crore successful the web implicit a play of the adjacent 3 years to amended its services and apprehension the diminution successful subscribers.

In September, the institution roped successful Nokia, Ericsson, Samsung for web enlargement with an outlay of Rs 30,000 crore implicit a play of the adjacent 3 years.