Reliance Jio Prepays All Spectrum Dues Worth Rs 30,791 Cr, Saves Rs 1,200 Cr p.a.

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Reliance Jio Prepays All Spectrum Dues Worth Rs 30,791 Cr, Saves Rs 1,200 Cr p.a.
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Private telecom company Reliance (NS: RELI ) Jio informed on Wednesday that it has paid all dues along with accrued interest, towards the entire deferred liabilities of spectrum acquisition before March 2021.

In a media release on Jan 19, Reliance Jio stated that it made a prepayment of Rs 30,791 crore to the Department of Telecommunications, concerning the entire deferred liabilities for spectrum acquired through auctions in 2014, 2015, 2016 and 2021. 

Besides, Jio also acquired spectrum from Bharti Airtel (NS: BRTI ) last year, through trading of rights. The company had acquired 585.3 MHz spectrum in the said auctions/trading, stated Jio’s media release on Wednesday.

In December 2021, the DoT announced that telecom companies could prepay their deferred spectrum liabilities on any date, following which, Reliance Jio has made the prepayment in Jan 2022.

“RJIL has now prepaid the entire deferred liabilities acquired in auction in the year 2014 and 2015 as well as spectrum acquired through trading”, added the company.

It had already made the first set of prepayment in October last year for the spectrum acquired in 2016.

The prepayment Jio has made now was due from FY23 to FY35 at an interest rate of 9.3-10% with an average residual period of over 7 years. 

By prepaying all these dues, Reliance Jio has saved interest costs worth Rs 1,200 crore p.a. executed at present interest rates.

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