The Indian government has approved a waiver of bank guarantee requirements for telecom operators in relation to spectrum purchases made before 2022. This decision aims to provide relief to Vodafone Idea, which has a debt of over Rs 24,700 crore to the government.

The move is part of a broader effort to alleviate financial stress in the telecom sector, where Indian operators collectively hold over Rs 30,000 crore in bank guarantee obligations. The government's decision follows the 2021 reforms that eliminated bank guarantee requirements for future spectrum acquisitions. By extending this relief to older spectrum holdings, the government hopes to improve cash flow for telecom operators, enabling them to invest more in network expansion.

The Cellular Operators Association of India (COAI) had previously advocated for the removal of bank guarantee requirements for pre-2022 spectrum purchases, arguing that it would help operators better manage their financial commitments.