Reliance Communications (RCom) has decided to sell spectrum to Reliance Jio Infocomm, with the latter meeting all the future liabilities associated with the airwaves for the next 15-16 years , Economic Times has reported.
The company will also furnish bank guarantees worth Rs 774 crore and has informed the Department of Telecommunications (DoT) of the same.
These bank guarantees are likely to be furnished on Friday (10 August), when the company’s appeal against the DoT’s show-cause notice to cancel its licence comes up for hearing at the “Telecom Disputes Settlement and Appellate Tribunal”.
The spectrum in question was brought by RCom at auctions in 2013 and 2015, with the payments required to be made over a period of 18 years.
Now as a result of Reliance Jio taking care of the liabilities arising out of the same, the report claims that the government is assured of receiving spectrum payment dues to the tune of Rs 15,000 crore over the next decade.
The news of this sale also brought cheer on the stock market and resulted in RCom’s shares surging by 9.3 per cent.
RCom seeks to raise about Rs 18,000 crore via the sale of spectrum and real estate, the latter being sold to Canada based Brookfield. The company currently has a debt of Rs 46,000 crore which it seeks to trim down.