The Department of Telecommunication has returned bank guarantees worth ₹23,000crores to Vodafone Idea and Bharti Airtel.

The move comes as a major relief to debt-laden Vodafone Idea which will get ₹15,000crores back.

On Thursday, the DoT submitted an affidavit to the Supreme Court, stating that they have returned bank guarantees to Voda Idea and Bharti Airtel, The Hindu reported.

Instead, the operators have been asked to refurnish bank guarantees of an amount equal to their next payable installment 13 months before its due date.

However, given that the telecom reforms package has also slashed the bank guarantees requirement from 80 percent to 20 percent of statutory dues demanded, the burden of bank guarantees will also be below in the future.

The bank guarantees returned to the telcos are for the annual spectrum installment payments deferred by the telcos for the spectrum auctions held in 2012, 2014, 2015, and 2016.

This will be a major boost from a fundraising perspective for the telcos.

Vi had been urging the government to release its bank guarantees, especially as external investors seek clarity on the same before considering investing.

It will be able to raise enough cash to invest in its 4G network, and potentially for future 5G investments as well.

The DoT has previously withheld these bank guarantees under the directive of the Supreme Court in their AGR judgment.