Airtel prepays Rs 15,519 crore at DoT to clear all deferred liabilities for 2014 spectrum: The Tribune India
New Delhi, December 17
Telecommunications operator Bharti Airtel said on Friday it paid Rs.15,519 crore to the government for prepayment of all of its deferred spectrum liabilities acquired in the 2014 auction.
The company had acquired the 128.4 MHz spectrum (including Telenor spectrum) for a consideration of 19,051 crore rupees in the 2014 auction, Airtel said in a statement.
The company estimates that the prepayment to the Department of Telecommunications (DoT) will likely result in interest savings of at least Rs 3,400 crore over the remaining life of the fully substituted capital.
In a statement, Airtel said it prepaid Rs.15,519 crore to clear all deferred liabilities for spectrum acquired in 2014.
“These liabilities were due in annual installments from fiscal year 2026-2027 to 2031-2032, and carried an interest rate of 10% (the highest rate among liabilities and deferred loans) and an average residual term over 7 years old, âthe statement said. added.
Airtel said it continues to exercise flexibilities towards a stronger and more efficient capital structure.
“The company welcomes the decision by the Department of Telecommunications to give industry the ability to prepay its deferred liabilities at any time at their NPV (Net Present Value) based on the interest rates specified for the auction.” respective. This allows licensees to plan and efficiently use their cash flow, âaccording to the company.
It is relevant to mention here that the telecommunications sector recently had a chance in the arm with the government’s approval of a highly successful aid plan for the industry, which included a four-year hiatus for the industry. companies of the payment of statutory contributions, the authorization to share rare airwaves, a change in the definition of the receipts on which the levies are paid and the authorization of 100 percent of foreign investments automatically.
The measures, aimed at relieving companies, also included the removal of spectrum usage charges (SUC) for airwaves acquired in future auctions.
Airtel has already said it will opt for a four-year moratorium on payments – on AGR and spectrum fees – offered by the government as part of a back-up plan for the telecommunications sector.
The company recorded a net profit of Rs 1,134 crore for the September 2021 quarter, compared to a loss (attributable to owners of the parent company) of Rs 763.2 crore in the quarter of last year. Its consolidated revenue for the second quarter of FY21 was Rs 28,326.4 crore, up 18.8% year-on-year (on a comparable basis) and 13% year-on-year on a year-over-year basis. published.
Bharti Airtel’s approximately 21,000 crore rights issue, which opened on October 5 and closed on October 21, 2021, has been oversubscribed. PTI