Govt will be only an investor in telcos post conversion of liabilities into equity: Ashwini Vaishnaw
NEW DELHI: Union telecom minister Ashwini Vaishnaw on Wednesday said the present and future debt liabilities will continue to remain with the telecom companies that have proposed to convert their interest liabilities payment into equity.
Debt-ridden Vodafone Idea Ltd (VIL), Tata Teleservices Ltd (TTSL) and Tata Teleservices (Maharashtra) Ltd (TTML) have proposed to convert their respective interest liability payable on dues to the government into equity. Post conversion, the government will have stakes in the three companies.
"Government will remain an investor only. The companies will be run by the professionals. All the debt liabilities will remain responsibility of the companies. The companies have given us commitment," Vaishnaw told PTI in an interview.