Reliance Jio Infocomm prepays entire deferred liabilities of Rs30,791cr to Telecom Dept for spectrums

19 Jan 2022 , 09:20 AM

Reliance Jio Infocomm Ltd (RJIL), a subsidiary of Reliance Industries Limited, announced on Wednesday that it has paid Rs30,791cr (including accrued interest) to the Department of Telecom towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auctions of the year 2014, 2015, 2016 and the spectrum acquired in the year 2021 through trading of right to use with Bharti Airtel Limited. The company had acquired 585.3 MHz spectrum in the said auctions/trading.

RJIL had executed the first tranche of prepayment on the anniversary date in the month of October 2021 pertaining to the spectrum acquired in the auction in the year 2016. Subsequent to the Department of Telecom’s decision in the month of December 2021 providing the telcos the flexibility to prepay their deferred spectrum liabilities on any date, RJIL has now prepaid in the month of January 2022, the entire deferred liabilities acquired in auction in the year 2014 and 2015 as well as spectrum acquired through trading.

These liabilities were due in annual instalments from FY 2022-23 to 2034-2035 and carried interest rate between 9.30% to 10% p.a. with an average residual period of 7+ years. The company estimates that the above prepayments will result in interest cost savings of around Rs1,200cr annually, at the current interest rates.

During early trade on Wednesday, Reliance Industries Ltd was trading at Rs2,529.45 per piece up by Rs8.6 or 0.34% from its previous closing of Rs2,520.85 per piece on the BSE.