Vodafone Idea writes to DoT of its inability to furnish Rs 6,051 crore bank guarantee

Vodafone Idea (Vi) has appealed to the Department of Telecommunications (DoT) secretary by stating that its current financial position does not allow it to furnish a Rs 6,090.7 crore bank guarantee (BG) or make a cash payment of Rs 5,493.2 crore towards a shortfall in the 2015 spectrum auction. Under these circumstances, the company has asked the DoT not to take "any coercive action" against the company.

Vi has neither submitted the required BG of Rs 6,090.7 crore nor made a cash payment of Rs 5,493.2 crore to the DoT for the shortfall in its 2015 spectrum auction payments by the March 10, 2025, deadline.

Vi's chief executive Akshaya Moondra, has reportedly appealed to the DoT to urgently allow equity conversion of the telco's upcoming adjusted gross revenue (AGR) and purchase dues related to the 2012, 2014, 2015 and 2016 spectrum auctions, as the cash-strapped company braces for a spike in regulatory payouts.

Moondra's letter follows the telecom department's decision to put on hold its proposal to waive the AGR dues of telcos amid a lack of consensus within the government’s top echelons. The prevailing view within the government is that providing financial relief to private companies—some of which are profitable—would be inappropriate.