Birlas may let Vodafone Idea go insolvent if government doesn’t help

MUMBAI: Aditya Birla Group will not infuse any fresh equity into Vodafone Idea Ltd, its telecom joint venture with Vodafone Group of UK, and let it opt for insolvency if the government does not provide substantial relief, including on the telco’s adjusted gross revenue (AGR)-based dues, which could be over 39,000 crore, senior executives aware of the matter said.

“The telecom business seems to be making money for everyone else except the players. It is unviable and unsustainable and will only drag down the group’s profitability. We need to rethink our capital allocation better in a difficult business environment,” said a senior group executive.