Experts see big cashflow relief for VIL, some say sizable govt stake likely in telco post-moratorium

The four-year moratorium on regulatory payments eases the sectoral stress for now and provides meaningful near-term cashflow relief to Vodafone Idea NSE 1.78 %, analysts have said although they are divided over whether it would offer a permanent fix for issues faced by the ailing telco.

Some experts contended that government may end up holding a ‘sizable’ chunk (estimates varied from 26 percent to majority stake) in VIL at the end of moratorium period, if the telco opts to pay cumulative interest or annual instalments by way of equity. Tariff hikes, argued many, would still be crucial for VIL, despite the relief measures announced.