Airtel prepays Rs 15,519 cr to DoT to clear all deferred liabilities

Airtel prepays Rs 15,519 cr to DoT to clear all deferred liabilities
Airtel Logo: Source/ Twitter

New Delhi, Dec 17: Telecom operator Bharti Airtel on Friday said it has paid Rs 15,519 crore to the government towards prepayment of its entire deferred liability pertaining to spectrum acquired in the 2014 auction.

The company had acquired 128.4 MHz spectrum (including Telenor spectrum) for a consideration of Rs 19,051 crore in the 2014 auction, Airtel said in a statement.

The company estimates that the prepayment to Department of Telecom (DoT) will likely result in interest cost savings of at least Rs 3,400 crore over the residual life for fully substituted capital.

In a statement, Airtel said it has prepaid Rs 15,519 crore to clear all deferred liabilities for the spectrum acquired in 2014.

"These liabilities were due in annual instalments from FY2026-2027 to 2031-2032, and carried an interest rate of 10 per cent (the highest rate among the deferred liabilities and borrowings) and an average residual life of 7 plus years," the statement added.

Airtel said it continues to exercise flexibilities towards a stronger and efficient capital structure.

"The company welcomes the Department of Telecom's decision giving the industry the flexibility to prepay their deferred liabilities anytime at their NPV (net present value) basis the interest rates specified for the respective auction.

Greater Kashmir