Any Relief on Bank Guarantees Will Benefit Entire Sector, Says Minister: Report

Union Communications Minister Jyotiraditya Scindia told reporters on Tuesday that any relief on bank guarantees for spectrum allocation would be applied across the board for all telecom players. However, he noted that no decision has been made yet, according to an ANI report.

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Also Read: Airtel Calls for Equal Treatment as Vodafone Idea Seeks Waiver on Bank Guarantees: Report

Airtel and Vodafone Idea’s Request

Earlier, Bharti Airtel had asked the Department of Telecom (DoT) to ensure equal treatment and a non-discriminatory framework in any potential waiver of spectrum bank guarantees (BGs). Vodafone Idea has requested a waiver of the bank guarantee requirement due to financial constraints. Airtel has reportedly asked the DoT to treat all players equally, irrespective of their “financial health.”

“I don’t think any step the government takes is going to be company-specific, because it’s a sectoral step,” said Scindia, according to the report.

Scindia’s Remarks on BSNL’s Revival

When asked about a revival package for BSNL, Minister Scindia explained that BSNL is fully government-owned, so any relief package provided to it cannot be compared to those for private sector companies.

“All the assistance that has been given has been given from a sectoral point, except the case of BSNL, which is 100 per cent Government company, and that too, as I’ve mentioned to you many times before, for the first time in India’s history, probably on the global perspective, you have a company that has come up with its own Indigenous stack,” said the minister, the report further added.