The Union Cabinet has waived the requirement to submit bank guarantees for spectrum purchased through auctions held before 2022, according to sources.
The move brings huge relief to debt-ridden Vodafone Idea as it already crossed the timeline to submit Rs 24,746.9 crore bank guarantee for spectrum payment coming up between October 2025 and September 2026.
The decision will also provide relief to Bharti Airtel and Reliance Jio who have bought radiowaves through various auctions that were held before 2022.
"Cabinet has waived the requirement of bank guarantees as per the relief sought by telcos," a source said.
As part of telecom reforms announced in September 2021, the government has already waived the requirement of depositing bank guarantees for spectrum purchased through auctions.
Vodafone Idea CEO Akshaya Moondra in the company's earning call had said the bank guarantees will impact the company's ability to seek debt facilities from the banks which the firm requires for investm