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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.

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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.

New Delhi: The difficulties of 255 crore customers of Vodafone Idea, a heavily indebted telecom company, may increase. The company’s network may be closed from November. Vodafone Idea owes Indus Towers about Rs 7,000 crore. Indus Towers has threatened that it will not be given access to the towers from November if the company does not clear its dues at the earliest. That is, the network will be closed for Vodafone Idea customers.

This information has been given in an ET report quoting sources. Tower company Indus Towers has given this warning by writing a letter to Vodafone Idea on Monday. The board meeting of Indus Towers was held on Monday itself. It discussed the financial position of the company. Indus Towers owes about Rs 7,000 crore to Vodafone Idea. Vodafone Idea is the third largest telecom company in the country after Reliance Jio and Airtel. But the financial position of the company is not good and it is facing huge debt.

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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.

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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.

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