Telecom Department Releases Bank Guarantees Worth Around Rs 9,200 Crore Of Airtel, Vodafone, Reliance Jio

The Department of Telecom (DoT) has launched financial institution ensures of round Rs 9,200 crore of Bharti Airtel, Vodafone Idea and Reliance Jio deposited for licence charge and spectrum utilization expenses, official sources conscious of the event mentioned. The transfer is a part of a reform package deal introduced by the federal government in September."Bank guarantee(BG) of around Rs 4,000 crore has been released for Bharti Airtel and Rs 2,500 crore for Vodafone Idea (VIL). BG of around Rs 2,700 crore of Reliance Jio was released last month," a supply advised PTI. Email question despatched to Bharti Airtel, VIL and Jio didn't elicit any reply.DoT slashed efficiency and monetary financial institution assure necessities of telecom operators by 80 per cent in October. Under the amended norms, telecom operators will probably be required to supply a efficiency BG of as much as Rs 44 crore for every service for the telecom licence in comparison with Rs 220 crore mandated underneath the outdated rule.Similarly, telecom operators might want to present a monetary BG of most Rs 8.8 crore per circle now, in opposition to the earlier requirement of Rs 44 crore. The guidelines is not going to be relevant in circumstances the place BGs have been furnished as a result of any courtroom order or are topic to any litigation, the licence modification observe mentioned.The guidelines is not going to apply to telecom operators at present going via the liquidation course of. The transfer will unblock the money of telecom operators that they hold with banks to furnish BGs.