Govt OKs $2-billion debt-to-equity plan for Vodafone Idea

The Union government Friday cleared a long-awaited plan to convert Vodafone Idea’s (Vi) interest dues worth more than

Rs 16,000 crore (or $2 billion) into equity, paving the way to become the single largest shareholder in the cash-strapped telecom company.

The government gave the green light after receiving an assurance from Vi’s promoters that they would infuse additional capital in the company — smoothing out a key wrinkle in the process.

Union Minister of Communications Ashwini Vaishnaw Friday said: “We had sought a firm commitment that the Aditya Birla Group would run the company and bring necessary investments. Birlas have agreed and hence we have agreed to convert.