Telcos have expressed concerns about the financing requirements for the upcoming 2G auction. CNBC-TV18's Aakansha Sethi reports, quoting sources, the low cost foreign borrowing will be made available for the first upfront payment.
The department of telecommunications (DoT) had asked the finance ministry to ease the ECB guidelines to enable for financing for telecom companies for the upcoming 2G auction that is scheduled to begin from November 12. Now the finance ministry has in turn written to the Reserve Bank of India (RBI) requesting for a one-year window for refinancing rupee debt via ECBs by telecom companies for the upfront payment.
The DoT also requested that the overall ceiling for ECBs under the automatic route be raised. Currently, the ceiling is at USD 750 million per company. However, the RBI is not keen to raise this limit. The final decision on the ECB norms will be taken in the third week of October by a high-level committee that will comprise RBI and finance ministry officials.
The finance ministry is also working on a model and structure of payment for spectrum and has decided to fix the interest for calculating the installments at 9.5 percent.