Government wants Vi promoters to put in more money before it accepts conversion of debt into equity

8 Dec 2022 , 02:26 PM

The Government has said that it is ready to accept conversion of the liabilities that Vodafone Idea owes it into equity if the promoters put in more money. The Government also wants the company to come up with a business plan for its recovery. Much of the liabilities of Vodafone Idea are currently in the form of dues to the government. It owes Rs 1,36,000 crore in the form of deferred spectrum payments, to the Government. AGR dues to the Government stand at around Rs 68,000 crore.

Promoter entities of Vi are the Vodafone Group and Aditya Birla Group. In March this year, Vodafone Plc had put in around Rs 3375 crore in Vodafone Idea. Aditya Birla Group had then put in Rs 1125 crore. Vi has still not come out with a clear plan regarding when it will lauch 5G services. Its competitors Bharti Airtel and Reliance Jio have already started launching 5G services.