Spectrum payment: VIL in discussion with DoT for waiver of bank guarantee

Debt-ridden telecom operator Vodafone Idea on Tuesday said it has been in discussion with the Department of Telecom for the waiver of bank guarantee which the company is required to submit a year before the due date for payment of spectrum acquired prior to 2022.

The Department of Telecom (DoT) has asked the telco to submit bank guarantees as an assurance for the spectrum payment of Rs 24,747 crore due in September next year.

As per norms, bank guarantees need to be submitted at least one year before the payment due date.

"The company has made detailed representations to the DoT and continues to be engaged with DoT for removal of the bank guarantee requirements for spectrum acquired before 2022. This is also an industry ask," Vodafone Idea (VIL) said in a regulatory filing.

According to sources, the DoT has also reached out to the finance ministry on the issue of giving exemption to telcos from submitting bank guarantees for spectrum payment dues.

VIL has sought relief citing the