The Department of Telecommunications (DoT) has returned the existing bank guarantees (BGs) of ₹15,000 crore to Vodafone Idea and ₹7,000 to Bharti Airtel. The duo had opted for such moratorium on spectrum auction instalments and no instalment is due necessitating security in the form of FBG (financial bank guarantees) till 13 months before the next payable instalment post moratorium period.
The availability of funds will help raise more loans and may be reinvested in CapEx heavy telecom networks.
The Department of Telecommunications (DoT) had withheld these BGs submitted for payment for spectrum dues as guarantee against future adjusted gross revenue (AGR) payments in accordance with the Supreme Court’s direction in its AGR judgement. The payments were due for auctions held in 2012, 2014, 2015 and 2016.
No such instalment payments are due till post the moratorium period ends in 2025.