NEW DELHI: Mukesh Ambani-led Reliance Jio Infocomm Ltd (RJIL), has announced that it has paid Rs.30,791 crore (including accrued interest) to the Department of Telecom (DoT) towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auctions of year 2014, 2015, 2016 and the spectrum acquired in year 2021 through trading of right to use with Bharti Airtel Limited.
The company had acquired 585.3 MHz spectrum in the said auctions/trading.
“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. 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,” Jio said in a statement.
“These liabilities were due in annual instalments from FY 2022-23 to 2034-2035 and carried interest rate between 9.30% to 10% p.a. with an average residual period of 7+ 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,” it added.
But the company still has spectrum dues pertaining to last year, when it acquired spectrum in the 800 MHz, 1800 MHz, and 2300 MHz bands for a total consideration of Rs 57,123 crore.
While it made an upfront payment of Rs 19,939 crore, it still has to pay the remaining Rs 37,184 crore. According to the terms of last year’s auction, the deferred payments have to be made over 18 years (two-year moratorium plus 16-year repayment period) with interest computed at 7.3 per cent per annum.