New Delhi: Telecom major Reliance Jio on Wednesday said it has paid Rs 30,791 crore (including accrued interest) to the Department of Telecom (DoT) to clear the entire spectrum liabilities that the telco acquired before March 2021.
According to a statement by Jio, the company had acquired 585.3 MHz spectrum in the spectrum auctions.
“Reliance Jio Infocomm... has paid Rs 30,791 crore (including accrued interest) to the Department of Telecom towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auctions of year 2014, 2015, 2016, and the spectrum acquired in year 2021 through trading of right to use with Bharti Airtel,” the company said.
These liabilities were due in annual instalments from FY22-23 to FY34-35 and carried interest rate between 9.30 per cent and 10 per cent, with an average residual period of more than 7 years.
“The company estimates that the above prepayments will result in interest cost savings of around Rs 1,200 crore annually at the current interest rates,” the statement said.
Jio has cleared all dues even after government has given options to telecom operator of availing four years moratorium on all spectrum related payments.
Jio had executed the first tranche of prepayment on the anniversary date in the month of October 2021 pertaining to spectrum acquired in auction in the year 2016.
Subsequent to DoT’s decision in December 2021 providing the telcos the flexibility to prepay their deferred spectrum liabilities on any date, Jio has now prepaid in the month of January 2022, the entire deferred liabilities acquired in auction in the year 2014 and 2015 as well as the spectrum acquired through trading.
Bharti Airtel last month paid Rs 15,519 crore to the government towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auction of year 2014.