Vodafone Idea has been granted waiver of bank guarantee for spectrum auctions held in 2012, 2014, 2016, and 2021, the telco informed the 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 said in a notification to the BSE.
This waiver is applicable only if the pro-rated value of spectrum used from the date of allocation till the end of three months after the due date of payment of next instalment is less than the value of payment made by the telecom operator on a net present value basis, it added. As per the telecom reform package of 2021, no bank guarantee was required to be provided for the spectrum auction held post-reform package.
Prior to this, Vodafone Idea was required to pay bank guarantee aggregating to Rs 24,800 crore for the auctions held in the years mentioned above. It also said it is in discussion with DoT to determine the final amount of partial shortfall for the 2015 auction.
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“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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