Not received intimation on BG waiver yet: Vodafone Idea

Vodafone Idea (Vi) Tuesday said that it has not yet received any communication from the telecom department on waiving off the bank guarantee requirements (BGs) for deferred spectrum instalments.

“We wish to further submit that the Company as yet has not received any communication from DoT / Government of India about any decision taken nor is there any press release available on its website,” Vi said in a clarification sought by the stock exchanges after its stock price zoomed 11.2% on Tuesday.

The telco added that it had made detailed representations to the telecom department for removal of the bank guarantee requirements for spectrum acquired before 2022 which was also an industry ask.

Late Monday, the Union Cabinet approved a proposal to waive off BG requirement for securitisation of deferred spectrum instalments for auctions conducted from 2012 onwards.

Also Read: Vodafone Idea a big winner as Cabinet okays bank guarantee waiver: What you need to know

The move is going to particularly benefit Vi, which was bound to submit BGs to the tune of Rs 24,700 crore for the past auctions. The telco’s stock closed 7.88% higher at Rs7.53 on the BSE Tuesday.

Bharti Airtel and Reliance Jio too will benefit as they also don’t need to submit the BGs, though the impact will be small. Airtel was scheduled to submit BGs to the tune of Rs 2300 crore next year while the amount for Reliance Jio was around Rs 4,000 crore.