PSU Watch logo

| Domestic flights to operate at full capacity from Oct 18 |   | Finance Minister to seek Cabinet nod for setting up company to monetise land asset of privatisation-bound CPSEs |   | Sitharaman's marathon meeting sessions with US businesses continues in New Yark |   | India will launch industry-led policies in space sector: ISRO Chief |   | No hike in fuel prices on Monday, relief for consumers facing historic high rates |  

Govt slashes bank guarantee requirement for telecom companies by 80%

Under the amended norms, telecom operators will be required to provide a performance bank guarantee of up to Rs 44 crore for each service for the telecom licence compared to Rs 220 crore mandated under the old rule
Department of Telecom has slashed bank guarantee requirement for telecom companies by 80%
Department of Telecom has slashed bank guarantee requirement for telecom companies by 80%

New Delhi: The Department of Telecom has slashed the performance and financial bank guarantee requirement of telecom operators by 80 per cent, according to a licence amendment note issued on Wednesday. Under the amended norms, telecom operators will be required to provide a performance bank guarantee of up to Rs 44 crore for each service for the telecom licence compared to Rs 220 crore mandated under the old rule.

Similarly, telecom operators will need to provide a financial bank guarantee of a maximum of Rs 8.8 crore per circle now, against the previous requirement of Rs 44 crore.

ALSO READ

The rule will not be applicable in cases where bank guarantees (BG) have been furnished due to any court order or are subject to any litigation, the licence amendment note posted on the website of DoT said.

The rules will not apply to telecom operators, who are currently going through the liquidation process.

The move will unblock the cash of telecom operators that they keep with banks to furnish BGs.

(PSU Watch- India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)