Union telecom minister Jyotiraditya Scindia ruled out any more government relief for the struggling Vodafone Idea after Supreme Court dismissed a petition by telecom companies to waive off penalties and interests accrued over the adjusted gross revenue (AGR), the Times of India reported.
Scindia said that the third-largest telecom operator in the country won’t be bailed out further through the equity conversion route. Currently, the Centre holds a 49 percent stake in the company.
The company now has to “chart its own path” and the balance sheet is the responsibility of the firm’s management, TOI reported citing an interview with the minister on May 31.
Scindia pointed out that the government has already converted dues worth Rs 36,000 crore of Vodafone Idea into equity and he does not see the Centre increasing its stake any further.
The minister ruled out any government plans to cushion telecom majors against AGR penalties and interests after the apex court dismissed plea for relief, the report said.
Vodafone Idea pushes for tariff hikes, says engaging with lenders for debt funding
Moreover, the government does not meddle in the functioning of private companies but is open to meet and discuss issues if the firms ask for it, TOI reported.
In the fourth quarter, the company's net loss narrowed marginally to Rs 7,166.1 crore from a year earlier. However, the loss has widened sequentially from Rs 6,609.3 crore in the December quarter.
Its revenue rose 3.8 percent to Rs 11,013.5 crore from a year earlier, on the back of tariff hikes and customer upgrades. The average revenue per user increased by 14.2 percent to Rs 175 from the year-ago period.
Vodafone Idea's stock was trading 0.71 percent lower at 09:37 am on the NSE at Rs 6.98.
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