Vodafone Idea requests the Government to release 15,000 cr bank guarantees

One of the major telecom companies of India- Vodafone Idea has asked the Government of India to release 15,000 cr in the form of bank guarantees. It has reached out to the Department of Telecom for the same. This decision of the telecom company just before the meeting of board directors is scheduled on March 3rd where it is believed that they will discuss a Fundraising program for the struggling company. It is also speculated that the company’s future action plans will also be decided that will decide its course in the telecom industry in the coming years. Vodafone Idea has requested that the dues it failed to clear to the government including  Adjusted Gross Revenue (AGR) should be converted into equity and there is no reason to hold the bank guarantees for the same dues. Reportedly, Vodafone Idea owes ₹50,339 crore to the government and for the same Rs. 15,000 crore was deposited as a bank guarantee. A government official on the condition of anonymity said: “Vodafone [Idea] has expressed the need to release bank guarantees since the AGR dues themselves have been deferred by four years.” Recently the parent company of the brand Vodafone sold some of its stake in Indus Tower to raise funds for the telecom company.