Indus Towers owes about Rs 7,000 crore to Vodafone Idea, the company has threatened to shut down Vodafone Idea’s network from November if its dues are not paid.
Lagging behind in 5G service
Airtel and Reliance Jio are preparing to launch 5G service on Diwali but Vodafone Idea has not made any such announcement so far. The reason for this is that the company is finding it difficult to finalize deals with companies that supply 5G equipment and tower companies. According to sources, these companies are seeking Vodafone Idea to clear past dues and make advance payments for new contracts. Vodafone Idea owes Rs 13,000 crore to these companies. Finnish company Nokia owes Rs 3,000 crore and Swedish company Ericsson Rs 1,000 crore.
Vodafone Idea is a joint venture between the UK-based Vodafone Group Plc. and the Aditya Birla Group (ABG). The company owes Rs 7,000 crore to tower company Indus Towers and Rs 2,000 crore to American Tower Company (ATC). Vodafone Idea has been incurring losses for several quarters. This is the reason why there is a delay in launching the company’s 5G service. The company is trying to raise Rs 20 thousand crore through debt and equity but it has not been able to do any deal so far.
vodafone idea loan
The company had a debt of over Rs 1.98 lakh crore at the end of June. Out of this, Rs 1.16 lakh crore is deferred payment dues while banks and financial institutions have a debt of Rs 15,200 crore. The company had only Rs 860 crore in the form of cash and cash equitables.