Reliance Jio Prepays Rs30,791 Crore to Clear All Its Deferred Spectrum Liabilities
Moneylife Digital Team 19 January 2022
Reliance Jio Infocomm Ltd (Jio) says it has paid Rs30,791 crore, including accrued interest, to the department of telecom (DoT) towards prepayment of the total deferred liabilities related to spectrum acquired in auctions of 2014, 2015, 2016 and the spectrum obtained in 2021 through trading of right to use with Bharti Airtel Ltd. The company had acquired 585.3MHz spectrum in the auctions or trading.
"Subsequent to DoT's decision in December 2021 providing telcos the flexibility to prepay their deferred spectrum liabilities on any date, Jio has now prepaid in January 2022, the entire deferred liabilities acquired in the auction in the year 2014 and 2015 as well as spectrum acquired through trading," the company says in a statement.
According to Jio, these liabilities were due in annual instalments from FY22-23 to FY34-35 and carried interest rate between 9.30% to 10% per annum with an average residual period of over seven years.
"The company estimates that the above prepayments will result in interest cost savings of around Rs1,200 crore annually, at the current interest rates," Jio says.
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