Reliance Jio prepays Rs. 30,791 crore clearing all deferred spectrum liabilities acquired in auctions prior to March 2021
Mumbai, January 19, 2022
Telecom services provider Reliance Jio Infocomm Ltd (RJIL) today said it had 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 prior to March 2021.
The deferrred liabilities pertained to spectrum acquired in auctions in years 2014, 2015 and 2016 and the spectrum acquired in year 2021 through trading of right to use with Bharti Airtel Limited.
RJIL had acquired 585.3 MHz spectrum in the said auctions and trading, a press release from the company said.
"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," the release said.
"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," the release said.
Reliance Jio Infocomm Limited is a part of Jio Platforms Limited, which is a majority-owned subsidiary of the Mukesh Ambani-led Reliance Industries Limited (RIL).