RCom reinstates Rs 774 crore bank guarantees with DoT

Reliance Communications (RCom) has reinstated bank guarantees worth Rs 774 crore with the telecom department, much ahead of the timeline set by the telecom tribunal. With this move RCom has avoided a looming crisis that the company had faced after the telecom department's show-cause notice to it on spectrum and licence cancellation.

This BG now clears the way for the asset monetisation plan of the debt-ridden company.

"RCom and its subsidiary Reliance Telecom have reinstated bank guarantees aggregating Rs 774 crore with the department of telecommunications (DoT), four weeks ahead of the last date of September 10, 2018 as granted by...Telecom Disputes Settlement and Appellate Tribunal (TDSAT)," RCom said in a statement to exchanges.

The reinstatement of the bank guarantees will ensure that the company's licence and spectrum value of Rs 11,300 crore "stands fully protected", the statement said, adding RCom is fully compliant with the stipulated guidelines.

"The company's asset monetisation programme of around Rs 25,000 crore for sale of MCNs (media convergence nodes), tower, optic fibre and spectrum is fully on track, and will be completed expeditiously," it said. The first tranche of asset monetisation proceeds has been received last week, the statement said without divulging details. 

RCom had recently got breather from the telecom tribunal on the licence and spectrum cancellation show-cause notice served by the DoT.