The Union Cabinet has approved the removal of the requirement to submit hefty bank guarantees for past spectrum purchases, providing relief estimated to exceed Rs 300 billion for telecom operators.
The relief comes with certain conditions designed to safeguard the exchequer against any potential payment defaults. The telecom sector, represented by the Cellular Operators Association of India (COAI), has been pushing for such waivers since the government’s 2021 reform package, which eliminated the requirement for bank guarantees starting 2022. The latest measure applies to guarantees tied to spectrum payments from auctions held in 2012, 2014, 2015, 2016, and 2021.
