Sistema and Uninor have requested the government to make changes to the current guidelines pertaining to external commercial borrowing (ECB) to help them raise funds for the forthcoming 2G spectrum auction.
According to Sistema, the current ECB norms do not permit refinancing of funds, which is crucial for raising funds for 2G spectrum. Uninor has asked the government to lift the $750 million cap that currently exists in raising funds through the ECB route. It has also been seeking the government’s permission for paying the first tranche of the required amount (33 per cent of the bid amount) that has to be shelled out upfront for the 2G auction, through the ECB route.
