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Vodafone Idea has failed to repay its January 2023 installment of pending dues to Indus Towers, people with knowledge of the matter told CNBC-TV18.
Indus Towers had allowed Vodafone Idea to pay pending dues amounting to Rs 7,000 crore in installments until July 2023, after the latter had sought softer repayment terms.
The board of Indus Towers will meet today at 3 PM where sources say that the next course of action post the non-payment would be considered. The board will also consider quarterly earnings for the October-December period.
Indus Towers has already made provisions worth Rs 3,000 crore, classifying it as provisions for "dubious debt." It made a provision of Rs 1,770 crore in the September quarter against receivables from Vodafone Idea, adding to the Rs 1,232 crore it had already provided in the June quarter.
The board of Indus Towers had warned Vodafone Idea of service closure over non-payment of dues. The board had expressed concerns over mounting dues and the subsequent non-payment from the telecom operator.
Shares of Indus Towers are trading 1.1 percent lower at Rs 170.95 ahead of the board meeting while those of Vodafone Idea are trading unchanged, near their 52-week low of Rs 6.95.
(Edited by : Hormaz Fatakia)
First Published: Jan 24, 2023 11:58 AM IST