The State Bank of India (SBI), is going to lend up to Rs 30 billion to service providers participating in the ongoing spectrum auction. The players will be using the funds to pay spectrum fee and expand their existing networks.
While the total payments for spectrum are expected to be over Rs 500 billion, the immediate payments are pegged at Rs 120 to 130 billion. A majority of the operators are expected to use the funds provided by SBI to make these payments to the government. The remaining payment will be made in installments.
According to the Reserve Bank of India, at the end of December 2013, the total advances to the telecom sector stood at Rs 859 billion at the end of December 2013.
