The Department of Telecommunications (DoT) has requested a revival plan from Vodafone Idea for the next four to five years before it can approve a bank guarantee exemption.

What Happened: The telecom operator is negotiating with the DoT for a waiver of the bank guarantee, as per a CNBC TV18 report. This guarantee is to be submitted a year ahead of the due date for payment of spectrum acquired before 2022. Vodafone Idea had planned to submit bank guarantees in instalments for various auctions, starting from September 20.

The firm is expected to submit bank guarantees exceeding ₹24,700 crore to the government in the upcoming months. The moratorium for Vodafone Idea’s spectrum auction dues concludes in September next year, necessitating the submission of bank guarantees a year in advance to secure the dues.

See Also: NBCC Secures ₹198 Cr Solar Project For Bokaro Steel Plant

Vodafone Idea has also requested government relief on ₹70,000 crore adjusted gross revenue (AGR) dues after the Supreme Court rejected its plea for a correction in the calculation of statutory dues and a waiver of penalty and interest.

As of June 30, 2024, Vodafone’s payment obligation to the government was ₹2,09,520 crore, including deferred spectrum payment obligations of ₹1,39,200 crore and AGR liability of ₹70,300 crore.

Earlier in the month, reports suggest that the DoT issued a notice for the delay in submitting necessary bank guarantees related to past spectrum auction dues.

Read Next: Suzlon, Jindal Renewables Ink 400 MW Wind Power Deal To Decarbonise Steel Production