Reliance Jio Infocomm Limited, a subsidiary of Jio Platforms Limited, on Wednesday announced that it has paid ₹30,791 crore, which includes accrued interest, to the Department of Telecom towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auctions before March 2021.
Reliance Jio paid for the year 2014, 2015, 2016 and the spectrum acquired in year 2021 through trading of right to use with Bharti Airtel Limited.
“The company had acquired 585.3 MHz spectrum in the auctions and trading. RJIL 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," the company notified in its regulatory filing.
RJIL 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 Department of Telecom’s decision in the month of December 2021 providing the telecom companies the flexibility to prepay their deferred spectrum liabilities on any date, RJIL 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 spectrum acquired through trading.
These liabilities were due in annual instalments from financial year 2022-23 to 2034-2035 and carried interest rate between 9.30% to 10% p.a. with an average residual period of more than seven years.
The company estimates that the prepayments will result in interest cost savings of around ₹1,200 crores annually, at the current interest rates. Bharti Airtel last month paid ₹15,519 crore to the Department of Telecom towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auction of year 2014.
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Reliance Jio prepays ₹30,791 crore, clears all deferred spectrum liabilities acquired before March 2021 - Mint
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