“Vodafone Idea has many requirements. It has a particular requirement for capital. How much capital, who will infuse? All those things are under discussion at this point in time," Vaishnaw said on the sidelines of 5G services launch in Bhubaneswar on Thursday.
The Centre is yet to convert the interest on deferred AGR and spectrum dues of ₹16,100 crore into equity.
India’s No.3 carrier had agreed to the government’s proposal as part of a reforms package announced in November 2021. Vodafone Idea opted for the conversion to equity in January last year.
Once concluded, the Centre will become the single largest shareholder in the carrier with a 33% share.
The much-delayed conversion has derailed the carrier’s fundraising plans of over ₹20,000 crore from investors announced in 2020. Meanwhile, its debt has climbed to about ₹2.2 trillion as of September 2022.
On 4 September 2021, the Vodafone Idea board had approved a proposal to raise ₹25,000 crore from external investors. Last March, Vodafone Group and Aditya Birla Group, the promoters of the debt-laden carrier, had pumped in ₹4,500 crore. Since then, fresh capital has not been infused.
Mint was the first to report that the Centre had urged the promoters to infuse more capital, and draw up a plan to get the company back in the black, before proceeding with the proposed equity conversion.
Vaishnaw said sector regulator, the Telecom Regulatory Authority of India (Trai), was working on issuing a consultation papers on OTT, which has become a bone of contention between OTT platforms and telcos.
“This (OTT) is a complex matter, and are not decided at one go. Globally, the entire sector is moving at a particular direction."
