- Tuesday, November 26, 2024
The Union Cabinet has waived the requirement to submit bank guarantees for spectrum purchased through auctions held before 2022
By: Shajil Kumar
SHARES of Vodafone Idea surged nearly 8 per cent on Tuesday amid reports that the Union Cabinet has waived the requirement to submit bank guarantees for spectrum purchased through auctions held before 2022.
The stock jumped 7.88 per cent to settle at Rs 7.53 apiece on the BSE. During the day, it soared 18.62 per cent to Rs 8.28.
The Union Cabinet has waived the requirement to submit bank guarantees for spectrum purchased through auctions held before 2022, according to sources.
The move brings huge relief to debt-ridden Vodafone Idea as it already crossed the timeline to submit ₹247.47 billion bank guarantee for spectrum payment coming up between October 2025 and September 2026.
The decision will also provide relief to Bharti Airtel and Reliance Jio who have bought radiowaves through various auctions that were held before 2022.
Industry body COAI on Tuesday said the Cabinet nod for bank guarantee waiver for past spectrum purchases is a “landmark decision” that would help reduce financial burden on telecom operators in the country.
The association – whose members include Vodafone Idea, Bharti Airtel and Reliance Jio – further said the move will enhance cash flow, free up capital and enable capital investments in network expansion and technology upgrades. This, COAI said, will ensure a stronger and robust rollout of telecom networks in the future. (PTI)
