Reliance Jio prepays all spectrum dues worth Rs 30,791 Cr, saves Rs 1,200 Cr pa
By Malvika Gurung
Investing.com — Private telecommunications company Reliance (NS:) Jio said on Wednesday that it had paid all dues, plus accrued interest, for all deferred spectrum acquisition liabilities by March 2021 .
In a January 19 press release, Reliance Jio said it had made an advance payment of Rs 30,791 crore to the Ministry of Telecommunications, in respect of all deferred liabilities for spectrum acquired through auctions in 2014, 2015 , 2016 and 2021.
In addition, Jio also acquired the spectrum of Bharti Airtel (NS:) last year, by rights trading. The company had acquired 585.3 MHz spectrum in said auctions/negotiations, Jio’s press release said on Wednesday.
In December 2021, the DoT announced that telcos could prepay their deferred spectrum debt on any date, after which Reliance Jio made the prepayment in January 2022.
“RJIL has now prepaid all deferred liabilities acquired at auction during 2014 and 2015 as well as spectrum acquired through trading,” the company added.
It had already made the first round of prepayments last October for spectrum acquired in 2016.
The prepayment Jio made now was due from FY23 to FY35 at an interest rate of 9.3-10% with an average remaining period of more than 7 years.
By prepaying all these dues, Reliance Jio saved interest charges worth Rs 1,200 crore per annum executed at current interest rates.