Reliance Jio prepays Rs 30,791 cr, clears deferred spectrum liabilities till Mar 2021

Sarkaritel
By Sarkaritel January 19, 2022 13:37

Reliance Jio prepays Rs 30,791 cr, clears deferred spectrum liabilities till Mar 2021


New Delhi, Jan 19 (IANS) Reliance Jio Infocomm on Wednesday announced that it has paid Rs 30,791 crore to the Department of Telecom towards prepayment of the entire deferred liabilities related to spectrums acquired before March 2021.

Reliance Jio Infocomm is a subsidiary of Jio Platforms.

The company has paid for the year 2014, 2015, 2016 and the spectrum acquired in 2021 through trading of right to use with Bharti Airtel, it said in a statement.

“RJIL had executed the first tranche of prepayment on the anniversary date in the month of October 2021 pertaining to spectrum acquired in auction in the year 2016,” it said in a statement.

“Subsequent to 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 auction in the year 2014 and 2015 as well as spectrum acquired through trading.”

These liabilities were due in annual instalments from FY23 to FY35 and carried an interest rate between 9.30 per cent to 10 per cent per annum with an average residual period of seven-plus years.

The company said that the prepayments will result in interest cost savings of around Rs 1,200 crore annually — at the current interest rates.

Sarkaritel
By Sarkaritel January 19, 2022 13:37