Centre ready to return guarantees if telecom firms choose moratorium

The government plans to return bank guarantees worth ₹14,000 crore to Vodafone Idea NSE 1.78 % (Vi) and ₹8,000 crore to Bharti Airtel NSE 0.95 % if they opt for a four-year moratorium on payment of spectrum dues, a person aware of the development said.

The development is expected to drastically reduce Vodafone Idea’s non-fund exposure to banks that have been hesitant to furnish fresh bank guarantees (BGs) to the loss-making telco due to its precarious financial position.