Vodafone Idea in talks with DoT to remove need for bank guarantees

Vodafone Concept remains in talks with the Department of Telecommunications to waive financial institution warranty needs for range acquired prior to 2022. The company needs to submit warranties worth over Rs 24,700 crore in the upcoming months. Similar waivers could profit competitors Reliance Jio and Bharti Airtel.

“We wish to submit that the Firm has actually made thorough depictions to the DoT and remains to be involved with DoT for removal of the financial institution warranty requirements for range obtained prior to 2022. This is likewise an industry ask,” the company said in a filing to the BSE, which has looked for information on issuance of notice from DoT.

Vi had actually previously contacted populate seeking a waiver for sending bank assurances. While the firms need not offer bank guarantees for airwaves bought in auctions from 2022 onwards, earlier rules mandated companies to offer a financial institution guarantee of a quantity of one yearly instalment.

The DoT has actually remained in discussions with the Finance Ministry worrying the removal of BG needs. Vodafone Idea (Vi) is required the submit the BGs as moratorium for range auction fees for the business comes to an end in September 2025 and BGs need to be sent at the very least a year ahead of time for protecting the charges. Vi was set up to send bank assurances in tranches for various public auctions, beginning with September 20.

In situation the DoT chooses to forgo the bank guarantee demand for previous auction dues, Dependence Jio and Bharti Airtel, together with Vi, will certainly additionally benefit to a degree. As per estimates, Dependence Jio’s yearly financial institution warranty demand might be to the song of Rs 4,000 crore while the amount for Airtel could be around Rs 3,000 crore.