Government expects Vodafone Idea promoters to infuse capital

New Delhi: The government wants promoters of the beleaguered Vodafone Idea — Vodafone Group Plc of the UK and Aditya Birla Group (ABG) — to show their commitment to the India telecom operations by infusing equity, as the government prepares a relief package for the debt-laden sector.

Officials said the Department of Telecommunications (DoT) is, in fact, considering reaching out to Vodafone Idea to understand its plans and the promoters’ long-term commitment towards the loss-making telco, as the government doesn’t want a situation where it announces a package and the company still goes under.

“The government is going all out to retain a three-player market,” a senior government official told ET. “But it is important for the two promoters to infuse capital into the company and explain their vision/strategy for the next few years.”