Friday, 22 October, 2021
HomeBusinessTelecom Department Slashes Bank Guarantee Requirement For Telcos By 80%

Telecom Department Slashes Bank Guarantee Requirement For Telcos By 80%

The brand new guidelines is not going to apply to operators, who’re at present going by the liquidation course of.

New Delhi: The Division of Telecom has slashed efficiency and monetary financial institution assure necessities of telecom operators by 80 p.c, in accordance with a licence modification be aware issued on Wednesday.

The modification has been made in previous telecom licences in the us (Unified Entry Companies licensee) class and new licences that have been began in 2012 – Unified Licence (UL) class.

The transfer will unblock money reserves of Bharti Airtel, Reliance Jio, Vodafone Concept, BSNL web licence holders like Tata Communications, Atria Convergence Applied sciences and many others that they’ve saved with banks for securing financial institution ensures (BG). 

Beneath the amended norms in UL, telecom operators can be required to supply a efficiency financial institution assure (PBG) of as much as Rs 44 crore for every service for the telecom licence in comparison with Rs 220 crore mandated beneath the previous rule.

Equally, telecom operators might want to present a monetary financial institution assure (FBG) of most Rs 8.Eight crore per circle now, in opposition to the earlier requirement of Rs 44 crore.

The rule is not going to be relevant in instances the place financial institution ensures (BG) have been furnished resulting from any courtroom order or are topic to any litigation, the licence modification be aware mentioned.

Within the case of UASL, there have been three completely different quantities of FBGs that have been charged – Rs 50 crore for every A class telecom circle, Rs 25 crore for B service space and Rs 5 crore for C class circles – that has been decreased to 20 p.c by the modification, which has been issued with rapid impact. 

“The PBGs and FBGs of present licensees shall be revised to 20 p.c of the present whole quantity held by the licensor … ,” the modification be aware for UASL mentioned. 

The brand new guidelines is not going to apply to telecom operators, who’re at present going by the liquidation course of.

(This story has not been edited by The Press Reporter workers and is auto-generated from a syndicated feed.)

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