Reliance Jio pays Rs 30,791 crore to clear big spectrum dues

Mukesh Ambani-led Reliance Jio on Wednesday stated it has paid Rs 30,791 crore to the Division of Telecommunications in direction of dues on spectrum bought earlier than March 2021. This consists of curiosity earned for spectrum bought in 2014-2016 and spectrum obtained by write-to-rights. Use settlement with Bharti Airtel in 2021.

The liabilities have been payable in annual installments from FY 2022-23 (FY23) to FY35 and carried an rate of interest of between 9.3 per cent and 10 per cent with a mean residual interval of greater than seven years. The agency estimates that this prepayment will lead to curiosity financial savings of round Rs 1,200 crore yearly.

Airtel had final month pay as you go Rs 15,514 crore in direction of spectrum liabilities associated to its 2014 buy to save lots of curiosity value.

Jio’s announcement comes two days earlier than the corporate’s board assembly to finalize its third quarter outcomes. There’s additionally a risk of elevating funds by the Board’s non-convertible debentures.

“Reliance Jio Infocomm (RJIL) executed the primary installment of prepayment in October 2021 in respect of spectrum acquired within the 2016 public sale,” the corporate stated.

“Following the choice of the Division of Telecommunications in December 2021, facilitating telcos to pre-pay their deferred spectrum liabilities on any date, RJIL has now pre-paid within the month of January, auctioned within the yr 2014 and 2015. The whole deferred liabilities obtained in as spectrum obtained by buying and selling,” the corporate stated.

The corporate nonetheless has spectrum excellent from final yr, when it acquired spectrum within the 800 MHz, 1800 MHz and 2300 MHz bands for a complete of Rs 57,123 crore.

Whereas it made an advance fee of Rs 19,939 crore, it’s but to pay the remaining Rs 37,184 crore. As per the phrases of final yr’s public sale, the deferred fee is to be revamped 18 years (two-year moratorium and 16-year reimbursement interval) with curiosity on the charge of seven.3 per cent every year.

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