The Union government will review if it needs to further convert its dues owed into equity in Vodafone Idea, a report by Business Standard said on March 25, adding that the step will be taken only if there is no other option.
The Central government is not interested in raising its equity in the telecom firm and wants it to raise capital on its own, the newspaper reported.
The company’s chief executive officer Akshaya Moondra has since early 2024 said that the relief package allows it to convert its dues owed to the government into equity, BS reported.
However, the telecommunications department said that the company was also expected to raise capital from strategic sources on priority, according to BS.
On March 24, Times of India reported that the government is set to waive off spectrum usage charges, providing major relief to telcom operators including Vodafone Idea, Bharti Airtel and Reliance Jio.
The exemption could provide a boost of several thousand crores of rupees and in turn help in the expansion of their networks and 5G services, the TOI report added.
Last week, Vodafone Idea rolled out its 5G services in the country, starting from the country's financial capital Mumbai. Further, Vi said it plans to invest Rs 50,000-55,000 crore over the next three years to expand its 4G network coverage to 90 percent of the country while rolling out 5G services in key geographies.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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