Govt returns bank guarantees worth Rs 15,000 crore to Vodafone Idea
The Department of Telecommunication has returned bank guarantees worth Rs 15,000 crore to Vodafone Idea (Vi).
This is in line with last year’s telecom reforms package which reduced bank guarantee requirements for licence fee and spectrum dues. Vi confirmed the return of guarantee but did not comment on the amount.
While guarantees worth Rs 2000 crore related to licence fee was returned to Vi earlier, spectrum related guarantees amounting to around Rs 15,000 crore were returned a few days back.
The Rs 15,000 crore bank guarantee pertains to spectrum auctions between 2012-16. Vi has opted for a four year moratorium on payment of the dues and thus existing bank guarantee pertaining to the auction has been returned.
The company will however have to furnish fresh guarantees of an amount equal to the next payable instalment including part of the deferred amount thirteen months before the next date of payment.
With the return of bank guarantees Vi hopes to avail new funding from banks in form of both fund and non fund based facilities like letters of credit that it plans to use for vendor financing, company’s chief financial officer Akshaya Moondra had said in January.
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