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Govt plans to return all bank guarantees to telecom companies
Government has approved that all telecom service providers who have opted for moratorium shall pay bank guarantees worth the next payable instalment, including that part of the deferred payment due with that instalment, the Minister of State for Communications Devusinh Chauhan informed the Lok Sabha on Wednesday.
The bank guarantees (BGs) have to be provided 13 months before the next due date of payment (after the deferment period).
Chauhan further mentioned, “In view of the fact that they have opted for such moratorium, no instalment if due necessitating security in the form of BGs till 13 months before the next payable instalment post moratorium. Accordingly, the Government is planning to return the Bank Guarantees (BGs) to the telecom companies, in respect of BGs submitted to securitise the deferred payment spectrum instalments for the spectrum auction 2012, 2014, 2015 and 2016 for which moratorium has been opted by Telecom Service Providers (TSPs).”
The Union Minister added that the Government of India (GoI) has given a moratorium of four years on payment of adjusted gross revenue (AGR) dues to all eligible telecom service providers (TSPs). He also noted that this order has been given in accordance with the Supreme Court order in the matter dated April 7, 2021.
Telecom service provider Vodafone Idea Limited (VIL) has converted its interest liabilities from deferred spectrum auction payment instalments and AGR dues pertaining to the moratorium period via equity, Chauhan underscored.
He further added that the Finance Ministry shall finalise procedure, method, rate of conversion, mix of equity and preferential capital (if any), compliance with SEBI and other relevant guidelines. BusinessToday
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