Bharti Airtel, a major telecom company, has paid the Department of Telecommunications (DoT) Rs 8,024 crore to partially settle deferred liabilities for the spectrum it purchased in the 2015 auction.

The Sunil Mittal-led telecom operator stated that the interest on the aforementioned installments, which are being paid to the telecom department for the spectrum, was 10 percent, taking advantage of the considerably more affordable financing options at its disposal.

The telecom giant paid Rs 8,815 crore in March of last year to settle debts related to airwaves purchased in 2015, and Rs 15,519 crore in December 2021 to completely settle debts related to spectrum purchased in 2014.

The company said that it is keeping its capital structure's emphasis on financial flexibility, which includes lowering borrowing costs and taking advantage of any possibilities for sizable interest savings, like the most recent prepayment.

Airtel continues to have access to well-diversified sources of capital or financing, giving it increased financial flexibility in its capital structure, including the ability to finance at the lowest cost possible by taking advantage of all available chances to save a sizable amount on interest, like this prepayment.

In October of last year, India's second-largest telecom carrier launched 5G services. Airtel purchased spectrum valued at Rs 43,084 crore ($5.24 billion) in India's $19 billion 5G spectrum auction, of which it has already paid back Rs 8,312 crore.

In the 2014 auction, Bharti Airtel paid 19,051 crore for 128.4MHz airwaves, including spectrum from Telenor's India division. As part of a bailout plan, the government allowed telcos the freedom to prepay deferred liabilities in September. A four-year embargo on spectrum payments, the ability to convert interest on spectrum and other government obligations into equity, and lowered bank guarantees were also included in the package.

On Monday, Bharti Airtel Ltd. shares experienced a 0.68 percent decline and ended the day at Rs. 889 per share. In the previous month, the stock increased 1.12 percent. Airtel shares have increased 9.28 percent year-to-date, while they have increased by 28 percent over the past year.

For the purpose to pay off high-cost obligations and refinance loans, companies like Bharti Airtel and Reliance Jio Infocomm Ltd. use inexpensive financing.

Bharti Airtel paid the agreed-upon 8,815 crore before the deadlines for the fiscal years 27 and 28 in March 2022. Prior to that, it paid off 24,334 crore of its deferred spectrum commitments before their scheduled maturities between November 2021 and March 2022. It had previously paid the government the 15,519 crore owed for the spectrum it had purchased in the 2014 auctions.

Greater rival Reliance Jio has paid the telecom government 41,583 crore in advance since October 2021, covering all outstanding debt for spectrum acquired through auctions before March 2021.