DoT clears Vodafone-Idea merger with riders

Girja Shankar Kaura

Tribune News Service

New Delhi, July 9

The Department of Telecom (DoT) on Monday approved the merger of Vodafone India and Idea Cellular but with the conditions that the acquirer would have to pay over Rs 13,500 crore as deferred liabilities.

In an order issued on Monday, the DoT has sought over Rs 6,300 crore as deferred spectrum payment liabilities in this regard from Vodafone Mobile Services Ltd (VMSL) and Vodafone India Ltd (VIL).

Clearing the merger that will create the country’s largest mobile services operator, the order said that M/s Idea Cellular Ltd (ICL) shall replace Bank Guarantees by Ms VML and VIL towards the annual instalments amounting to Rs 2,004.50 crore, Rs 2,936.76 crore and Rs 1,484.34 crore in respect of the spectrum bought in auctions held in 2014, 2015 and 2016, respectively.

It further said M/s ICL shall also submit a Bank Guarantee towards one-time spectrum charge (OTSC) for Rs 3,322.44 crore (Rs 2,894.95 crore in respect of M/s ICL plus Rs 427.49 crore in respect of the erstwhile M/s Spice Communication Ltd) towards spectrum holding beyond 4.4 MHz in the GSM band as per clause 3(I) and 3(M) of Merger and Acquisition Guidelines cleared on February 20, 2014.