(PTI) Mobile tower giant Indus Towers is learnt to have asked debt-ridden Vodafone Idea to clear outstanding dues and pay every month on time for continuity of business post-November, sources aware of the development said on Wednesday.
The development comes after independent directors expressed concerns over the mounting dues of Vodafone Idea (VIL), a source, who did not wish to be identified, told PTI.
"Indus Towers has asked VIL to clear past dues at earliest. The company has asked VIL to clear 80 per cent of current month dues and make the entire payment on-time from next month onwards. Post-November Indus Towers will stop access to Vodafone Idea in case of non-payment," the source said.
Another source said that American Tower Corporation (ATC), which has 75,000 mobile towers in India, is also mulling similar steps to secure its dues.
Email queries sent to Vodafone Idea, Indus Towers and ATC elicited no reply.
VIL had availed services worth ₹9,446.8 crore from Indus Towers. The company paid ₹3,375 crore to the Indus Towers that it received in the form of equity investment from Vodafone.
At present, VIL is estimated to owe around ₹6,800 crore to Indus Towers and ₹2,400 crore to ATC.
VIL has proposed a payment plan to Indus Towers wherein they conveyed their ability to pay part of the billed amount till December 2022 and 100 per cent thereafter along with clearance in a phased manner between January 2023 and July 2023 of the old dues that would accumulate till December 2022.
Indus Towers management had said that the company is negotiating with VIL to get a better payment plan in place.
In the quarter ended June 30, 2022, Indus Towers trade receivables decreased by ₹810 crore due to provision for doubtful debt of ₹1,230 crore, which is accounted for in the other expenses.