Vodafone Idea (Vi) has allegedly advanced several banks to contract loans adding up to Rs 7,000 crore, per the media report. State Bank of India, HDFC Bank, IDFC First Bank, and Punjab National Bank are the banks that the telco has come up to.

However, the lenders have pursued clarity from the telco on the Government’s possible shareholding and its strategies to imbue capital in Vi. The loan bulks will be used to wage some of its dues to Indus Towers.

Vi has dues worth Rs 7,500 crore, requiring to pay to Indus Towers. The company dedicated the tower company to pay 100% of the dues from January headlong. Indus Towers has cautioned Vi that if the company flops to clear its dues, it will lose its entry to tower sites. Vi has requested them to factor in Rs 15,000 crore in bank guarantees and allow new loans, the report mentioned. As of September 2022, Vi’s negative net value stood at Rs 75,830 crore.

“Vi could face drastic action from Indus if it fails to encounter the newest payment timelines, starting from January. It could worsen and stronger dealings to recover its dues discussed at Indus’ next board meeting if not paid in time, as per ET.

Besides Indus Towers, the company also needs crucial funds to pay Nokia and Ericsson. It also wants funds for the rollout of 5G facilities and intensifying its 4G coverage to arrest the drop in customer base.