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Govt Eyes Vodafone Idea Relief in Weeks
1 Dec
Summary
- Government evaluating Vodafone Idea's relief proposal post Supreme Court ruling.
- Relief recommendations for Vodafone Idea expected within weeks.
- Government assures no stake increase or PSU conversion for Vodafone Idea.
Union Telecom Minister Jyotiraditya Scindia announced that the Indian government is carefully assessing Vodafone Idea's (Vi) proposal for financial relief. This evaluation is being conducted in direct response to a recent Supreme Court judgment, with official recommendations anticipated within the coming weeks. Minister Scindia stressed that any relief measures would be exclusively for Vodafone Idea, stemming from the specific context of the court's ruling.
The government's stance is clear: it will not increase its shareholding in Vi or transform it into a public sector undertaking. Scindia highlighted Vi's strong capital expenditure plan and successful recent fundraising efforts, noting that the company has a stable cash flow and intends to invest in network enhancement. Despite the overhang of dues, the minister suggested Vi may have avenues to secure additional debt once relief measures are finalized.
Minister Scindia also confirmed that Bharti Airtel has not requested similar relief concerning its Adjusted Gross Revenue (AGR) dues. He indicated that the ministry is working within the legal parameters set by the Supreme Court. The final contours of the relief package are expected by the year's end, providing a clearer path forward for Vodafone Idea's operational and financial strategies.
