Vodafone Idea (Vi), while is a struggling telecom operator, can't be counted out of the market in any manner. The telco has managed to raise significant funds in early phase of 2024, and is hopeful of raising more in the near future via debt. Vi was counting on further govermment support on the matter of AGR (adjusted gross reveue) dues and spectrum dues, but that's unlikely to come now. As Business Standard has already reported, the government is not keen on extending support to Vi if it can't raise investments from the market.
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VIL Seeks Relief in the Form of Dues to Equity Conversion
It's no secret that the management of Vi has reached out to the government for further dues to equity conversion. The telco is reportedly looking to give away more equity in the company to the government, increasing the center's stake in the company to 49%. The government has spoken several times in the past about its involvement in Vi.
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Vodafone Idea is only in the interests of the government to keep India a four player telecom market. There's no business interest for the government from Vi. However, the center won't just help the telco blindly. VIL (Vodafone Idea Limited) needs to tackle the issue of further fund raising. If Vi is able to raise more funds, the telco would likely get help from the center, a demand that has been placed in the past as well.
Vodafone Idea Back in the Drama
Vodafone Idea has been in the drama for several years. Some times it is the telco's survival, some times it is the dues to equity conversion, some times it is debt towards companies infrastructure companies like Indus Towers, Nokia, Ericsson, and more, some times it is about 5G rollout, and then some.
