Vodafone Idea Limited (Vi) has failed to renew some lapsed bank guarantees (BGs), some as low as Rs 9.9 million, and sought more time from the government to replenish them.
In a letter to the Controller General of Communication Accounts (CGCA-revenue wing) in the Department of Telecommunications (DoT), Vi said that due to its weak financial position, it is not in a position to issue replacement BGs of Rs 9.9 million and Rs 3.25 million as it requires 100 per cent cash margin to be provided to the banks.
The telco said that it has been unable to renew additional BGs of undisclosed sums issued by Kotak Mahindra Bank due to its continuing financial constraints. Kotak’s BG exposure to Vi, at present, is within Rs 100 million.
