Telcos may seek DoT’s help as Trai refuses to discontinue bank guarantees

New Delhi: India’s top private telecom operators may raise the issue around abolishment of bank guarantees with the Department of Telecommunications (DoT) after the sectoral regulator rejected their demands and proposed to continue with the practice of submitting the financial instrument for securing statutory payments.

Senior executives at the top carriers said that bank guarantees (BGs) serve no purpose and block a lot of capital, which can otherwise be used for network infrastructure, especially with 5G roll outs well on their way. As per estimates, around Rs 2,600 crore worth of BGs are lying with the government currently.