Minister of state for communications, Devusinh Chauhan said that the government has planned to return all bank guarantees provided by telecom operators. This decision was taken t give a big relief to Vodafone Idea which is lacking sufficient capital. He further added, instead, the telecom companies will be asked to refurnish bank guarantees of an amount equal to their next payable installment 13 months before its due date.
Chauhan said, “In view of the fact that they have opted for such a moratorium, no installment is due necessitating security on the form of BGs till 13 months before the next payable installment post moratorium.”
The government has first time officially confirmed it would be returning bank guarantees to operators. The returned bank guarantees will be added to its lending banks’ capital pool. This will enable the telecom companies to get more loans. The companies also need funds to participate actively in the upcoming 5G spectrum auctions.
