Vodafone Idea (Vi) said on Tuesday that it has not yet received any communication from the Department of Telecommunications (DoT) or the Government of India regarding the waiver of bank guarantee requirements (BGs) for deferred spectrum instalments. This clarification comes in response to a news report by Livemint dated November 26, 2024, about the Union Cabinet's approval of a proposal to waive bank guarantees for telecom operators on spectrum purchased in auctions up to 2022.
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Clarification on Bank Guarantee Waiver
"We wish to further submit that the Company as yet has not received any communication from DoT / Government of India about any decision taken nor is there any press release available on its website," Vi said in a clarification sought by the stock exchanges after its stock price surged by over 10 percent on Tuesday.
The telco added that it had previously submitted detailed representations to the DoT on October 8, 2024, requesting the removal of the bank guarantee requirement for spectrum acquired before 2022, in line with industry demands.
However, the company also noted that no press release on the matter has been published on government websites. The company assured that it would make the necessary disclosures once a formal decision is communicated or a press release is issued.
"As and when a decision is communicated by the DoT or any decision of Government of India through a press release is available, the Company will make the necessary disclosures as required," Vi further said.
Also Read: Any Relief on Bank Guarantees Will Benefit Entire Sector, Says Minister: Report
Impact on Telecom Operators
The move is going to particularly benefit Vodafone Idea, which was required to submit bank guarantees amounting to Rs 24,700 crore for the past auctions. Bharti Airtel and Reliance Jio will also benefit, as they too are no longer required to submit the BGs, although the impact on them will be relatively small.
