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.