RJIL prepays Rs 30,791 cr clearing all deferred spectrum liabilities acquired in auctions prior to March 2021
Jan 19, 2022
Mumbai (Maharashtra) [India], January 19 : Reliance Jio Infocomm Ltd (RJIL), a subsidiary of Jio Platforms Limited, on Wednesday announced that it has paid Rs 30,791 crore (including accrued interest) to the Department of Telecom towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auctions of years 2014, 2015, 2016 and the spectrum acquired in the year 2021 through trading of right to use with Bharti Airtel Limited.
According to the official statement, the company had acquired 585.3 MHz spectrum in the said auctions or trading.
RJIL had executed the first tranche of prepayment on the anniversary date in the month of October 2021 pertaining to spectrum acquired in the auction in the year 2016.
Subsequent to the Department of Telecom's decision in the month of December 2021 providing the telcos 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 the auction in the year 2014 and 2015 as well as spectrum acquired through trading.
These liabilities were due in annual instalments from FY 2022-23 to 2034-2035 and carried interest rate between 9.30 per cent to 10 per cent p.a. with an average residual period of seven-plus years.
The company estimates that the above prepayments will result in interest cost savings of around Rs. 1,200 crores annually, at the current interest rates.
