Reliance Jio prepays Rs 30,791 Crore Spectrum Liabilities

Reliance Jio has announced that it has paid Rs 30,791 crore with accrued interest, on the Department of Telecom for the clearing of the entire spectrum payments liabilities that it had acquired before March 2021 auctions.

The company has acquired a 585.3 MHz spectrum in these auctions and trading. The company released a statement saying that it has estimated that the above prepayment will result in interest cost savings of almost Rs 1,200 crore annually. With this, Reliance Jio has cleared all dues even after having an option of availing four years moratorium on all spectrum-related payments by the government.

The liabilities were due in annual installments from the financial year 2022-23 to 2034-35 at an interest rate of 9.30 to 10 percent per annum with an average residual period of more than seven years.