Vodafone Idea fails to renew bank guarantees amid financial constraints, seeks time

Kolkata | Mumbai: Vodafone Idea (Vi) has failed to renew some lapsed bank guarantees (BGs) – some as low as Rs 99 lakh – and sought more time from the Centre to replenish them, underscoring the precarious financials at the debt-laden telco that is continuously losing subscribers to two of its bigger rivals.

“Due to our weak financial position, we are not in a position to issue replacement BGs of Rs 99 lakh and Rs 32.49 crore as this requires 100% cash margin to be provided to the banks,” Vi said in a letter dated July 7 to the Controller General of Communication Accounts (CGCA-revenue wing) in the Department of Telecommunications (DoT).