The Indian authorities just isn’t eager to lift its stake within the financially beleaguered telecom operator Vodafone Concept (VIL) and needs the corporate to first elevate investments by itself. The federal government will research the matter of additional changing Vodafone Concept’s dues into fairness provided that no different choices can be found, Enterprise Customary reported, citing officers.
Additionally Learn: Vodafone Concept Says It Can’t Furnish Rs 6,051 Crore BG: Report
CEO Repeatedly Said the Phrases of the 2021 Aid Package deal
“Since early 2024, Vi chief govt officer Akshaya Moondra has repeatedly mentioned the phrases of the 2021 monetary reduction package deal permit it to hunt additional conversion of dues owed to the federal government into fairness. Relating to his newest letter to the Division of Telecommunications (DoT) in search of the identical,” the report quoted officers as saying.
“Telco ought to tie up main debt funding, dues should be paid again, authorities feels,” based on the report.
VIL’s Request for Extra Fairness Conversion
In a letter to Telecom Secretary Neeraj Mittal on March 11, VIL requested an additional conversion of its dues into fairness. If permitted, the federal government’s stake within the firm might rise from 22.6 p.c to 49 p.c, sources mentioned, as per an earlier report.
“We urgently require money circulation help from DoT for AGR and spectrum instalments falling due… AGR dues and spectrum instalments for 2012, 2014, 2015 and 2016 auctions could also be permitted for fairness conversion on the earliest as envisaged beneath the Telecom Reform Package deal 2021,” Moondra reportedly said in a March 11 letter to the DoT secretary. Based on Vi’s letter, complete fairness conversions would quantity to Rs 36,950 crore “on an NPV (web current worth) protected foundation.”
Additionally Learn: Vodafone Concept Seeks Additional Authorities Assist Amid AGR Dues Strain: Report
Authorities Rejects AGR Waiver
Vodafone Concept at the moment owes Rs 36,950 crore in AGR and spectrum dues and should instantly pay Rs 13,089 crore within the coming weeks. The corporate has said it lacks the power to make these funds and is in search of reduction beneath the 2021 Telecom Aid Package deal, based on earlier experiences.
The request comes amid experiences that the federal government has rejected any waiver on AGR dues. A proposed discount in AGR liabilities might have provided Vodafone Concept Rs 52,000 crore in reduction, slicing its complete debt by 25 p.c.
