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In a big relief for the beleaguered telco, the government approved a proposal to convert the Rs 16,133 crore interest into shares. Following this decision, the government’s stake in the loss-making Vodafone Idea will be around 33 percent.
Telecommunications Minister Ashwini Vaishnav said on Friday that the government’s decision to convert Vodafone Idea’s interests into shares was taken after obtaining a firm commitment from the Aditya Birla Group to run the company and attract the necessary investment. In a big relief for the beleaguered telco, the government approved a proposal to convert the Rs 16,133 crore interest into shares. Following this decision, the government’s stake in the loss-making Vodafone Idea will be around 33 percent.
Vodafone Idea has a liability of around Rs 2 lakh crore. In a statement issued after the decision, Vaishnav said: “We had sought a firm commitment that the Aditya Birla Group would manage the company and bring in the necessary investment. Birla Group has agreed to this and therefore we have agreed to convert the outstanding liability into equity.” With this, he said the government wants the presence of three companies other than BSNL in the Indian telecom market so that consumers can be assured Your Health Competition May Be Found Vodafone Idea has received relief from outstanding liability under the telecom relief package announced in September 2021. Following this decision, the company will issue capital shares of par value Rs 10 each to government.
Disclaimer:Prabhasakshi has not edited this news. This news has been published from PTI-language feed.
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