The Department of Telecommunications (DoT) has allowed Aircel to raise more than Rs 210 million through local and overseas loans through a consortium led by State Bank of India (SBI). Aircel has huge debt and plans to use the money raised through loans to refinance existing debt.

DoT has agreed to sign a tripartite agreement with SBI and Aircel to raise Rs 145 billion through domestic lending and another Rs 70.80 billion as overseas borrowings against licences/spectrum in 15 circles.

At present, Aircel has licences to operate 2G services in 22 circles, 3G services in 13 circles and 4G services in eight circles. The operator is yet to launch 4G operations. The company’s total debt stands at Rs 240 billion primarily due to higher payout of about Rs 100 billion for 3G and broadband wireless access spectrum in the 2010 auctions, and for expanding its 2G and 3G services.

The 15 circles that are being pledged by Aircel to raise loans include Tamil Nadu, Karnataka, Maharashtra, Delhi, Mumbai, West Bengal, Assam, Bihar, Himachal Pradesh, Jammu & Kashmir, Kerala, North East, Orissa, Uttar Pradesh (West) and Uttar Pradesh (East).