look news india
The Department of Telecommunications has sought the opinion of the Finance Ministry to relax the terms of bank guarantee to Vodafone Idea. If the Finance Ministry gives it the green signal, the government will seek approval from the Cabinet next week. The company has sought exemption on depositing a bank guarantee of about Rs 24,750 crore. Giving details about the news, our colleague Aseem Manchanda said that there has been fresh progress on the relaxation of the condition of bank guarantee for VODA-IDEA. The Department of Telecommunications has sought the opinion of the Finance Ministry on this as the approval of the Finance Ministry is necessary on the release of VI.
The government will move forward after the approval of the Finance Ministry. Cabinet approval is necessary for bank guarantee waiver. VOD-IDEA has demanded exemption in bank deposit guarantee. For this, the government will have to change the auction conditions. Exemption from bank deposit guarantee has been sought from the government. The company has sought exemption from bank guarantee deposit of Rs 24,750 crore. The first bank guarantee has to be given on September 22. VI has to deposit the entire bank guarantee by October. To give this concession to Vodafone Idea, the government will have to change the auction conditions. All operators will benefit from the change in conditions.
This payment has to be made by Vodafone Idea for the spectrum purchased in auctions held before 2022. The company had opted for a four-year moratorium on spectrum payments approved under the government relief package in 2022. The moratorium period for payment obligations related to spectrum auctions held till 2016 expires between October, 2025 and September, 2026. The government's stake in Vodafone Idea was 23.8 percent as of March 31, 2024, which was 33 percent in 2023.