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Vodafone Idea needs capital, not mere dues conversion to equity: Vaishnaw, Telecom News, ET Telecom
Vodafone Idea (Vi) needs capital infusion, and not just conversion of the mobile operator’s interest dues on statutory payments into government equity, telecom minister Ashwini Vaishnaw said Thursday, adding that the “complex issue” was under discussions. It has a particular requirement of capital. At the event he said that state-run Bharat Sanchar Nigam Ltd would start 5G services in 2024.Vodafone Idea has blamed the delay on the part of the government to convert its accrued interest on the deferred adjusted gross revenue (AGR) into equity as the reason for not being able to raise funds from external investors. Without promoter infusion, even banks are unlikely to support. It warned that if the issue wasn’t resolved soon as per the Cabinet decision, it would have more “negative implications” for the company and for the investment climate in India. As of September-end, the telco had a net debt of around Rs 2.2 lakh crore and a gross cash balance of Rs 190 crore. Source -https://telecom.economictimes.indiatimes.com/news/vodafone-idea-equity-conversion-complex-issue-under-discussion-vaishnaw/96759164 #vofafone #idea
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