Reliance Jio clears dues of spectrum auctions before 2021text_fields
New Delhi: India telecom giant Reliance Jio said in a statement on Wednesday that it had cleared all the spectrum payments liabilities it had acquired before 2021 March auctions, including accumulated interest, as it has paid Rs 30,791 crore to the Department of Telecom, PTI reported.
In its statement, the company, Reliance Jio Infocomm Ltd, said that the payment included all the deferred liabilities regarding spectrum acquired in 2014, 2015, 2016 and the spectrum acquired in 2021 through trading of right to use with Bharti Airtel. Jio had gained 585.3 MHz spectra through all the auctions and trading.
The statement further said that the company estimated the mentioned prepayments would lead to interest cost savings of Rs 1200 crore annually as per the ongoing rates.
Reliance moved to clear the dues despite the government providing options to the company offering four years moratorium on all spectrum-related payments.
The company had paid the first instalment of dues in October 2021 regarding spectrum acquired in 2016. In January 2022, it cleared all the remaining dues despite the liabilities being due in annual instalments from the financial year 2022-23 to 2034-35. The interest rates were at 9.30 to 10 per cent with an average residual period of seven years.
Last month, Bharati Airtel had paid Rs 15,519 crore as prepayment of the total deferred liabilities of spectrum acquired in 2014.