Inexplicable delay

Nearly a year after the government said it would acquire a 33% stake in Vodafone-Idea by converting dues of `16,100 crore into equity shares, the transaction is yet to go through. In mid-September last year, the government had rolled out a relief package for telcos allowing a four-year moratorium on spectrum and adjusted gross revenue (AGR) dues, as also options to convert the interest into equity. In January, the Vodafone board approved the conversion of dues into equity in a move that would dilute the stakes of the two promoters and make the government the majority shareholder.

Now, the department of telecommunications reportedly wants the promoters of Voda-Idea to contribute to the firm’s equity capital and rope in new investors. Further, media reports quote government sources as saying that it is waiting for the company to come up with a business plan that includes the rollout of 5G services.