Lengthy Wait: Telcos could not get again all financial institution ensures

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In response to estimates, Vodafone Concept has spectrum associated BGs price Rs 15,000 crore whereas for Bharti Airtel the identical is of round Rs 8,000 crore. The DoT has already began returning BGs associated to licence charges and to this point returned BGs price Rs 9,000 crore to the businesses.

The division of telecommunications (DoT) will not be prone to return financial institution ensures (BGs) associated to spectrum auctions to Vodafone Concept and Bharti Airtel anytime quickly because it must first finalise a mechanism for securing the adjusted gross income (AGR) dues of the 2 companies. Nevertheless, spectrum public sale associated BGs of Reliance Jio shall be returned because it doesn’t have any AGR associated dues as per the Supreme Court docket order.

In response to estimates, Vodafone Concept has spectrum associated BGs price Rs 15,000 crore whereas for Bharti Airtel the identical is of round Rs 8,000 crore. The DoT has already began returning BGs associated to licence charges and to this point returned BGs price Rs 9,000 crore to the businesses.

However because the DoT has not securitised AGR associated dues, it’s contemplating to carry again spectrum public sale associated BGs until a closing resolution is taken on this regard, sources mentioned. The federal government is treading cautiously due to the Supreme Court docket order which states that telecom operators need to pay the AGR dues together with curiosity and penalty as calculated by the DoT.

In September 2020, the Supreme Court docket had ordered that the businesses must pay their dues over a 10-year interval, after paying 10% of the dues upfront by March 31, 2021. Thereafter, the deferred cost cycle would run until 2031 with the ten% quantity to be paid by March 31 yearly. As per DoT’s calculations, whole AGR dues of Bharti Airtel stood at Rs 43,980 crore, of which the corporate had paid Rs 18,004 crore. Vodafone Concept dues stood at Rs 58,254 crore, of which the agency had paid Rs 7,854 crore.

After the telecom aid bundle, requirement of BGs has been lowered by 80%. It additionally meant that previous BGs associated to deferred spectrum installments in addition to licence charges and so forth shall be returned to operators. However since, there isn’t a readability relating to the AGR dues and find out how to safe the quantity, the DoT has not but began to return public sale associated BGs.

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