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 the 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 that it has prepaid Rs 15,519 crore to clear all deferred liabilities for spectrum acquired in 2014.
"These liabilities were due in annual instalments from FY 2026-2027 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 that 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. This allows the licensees to efficiently plan and use their cash flows," according to the company.
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(Published 17 December 2021, 10:07 IST)
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