Vodafone Idea (Vi), the ailing telecom operator in the country, can get more help from the Indian government to boost its chances of survival and make a comeback. Vi has already opted for the dues to equity conversion and received the benefits of the relief measures that govt had announced in September 2021. Besides this, the government is ready to help the telecom operator further. However, there's a condition. The government wants the promoters of the company, including the Aditya Birla Group and the Vodafone Group Plc, to pitch in with additional funds. It is worth noting that the government has put a similar condition on the promoters before as well. According to a Business Standard report, the government is open to the possibility of providing Vi with a comprehensive package for its revival.
Govt Wants to Understand the Plans of Vodafone Idea
The Indian government wants to understand what the plans of Vodafone Idea are as it isn't going to launch 5G soon. The centre wants Vi to come up with a fresh business plan for its survival. According to the report, a government official aware of the matter said that the telco needs a more comprehensive restructuring of its dues to survive. The official also said that the government sees no reason why the promoters can't put in additional money in the telco.
Vodafone Idea is currently waiting to hear back from the government about what is happening with the dues to equity conversion. The Indian government would be entitled to a third of the company post the conversion of accrued interest dues into equity. Earlier this year, Vi had raised around Rs 4500 crore from the promoters. The raised fund was used for the dues payment to Indus Towers.
The promoters of the telco have openly shown their restraint in giving more funds to Vodafone Idea (Vi). The telco has often talked about correcting the industry tariffs and bringing it to the level where it can actually make money and gain the interest of investors.
