Bhubaneswar: Telecom Minister Ashwini Vaishnaw said Thursday said debt-ridden telecom operator Vodafone Idea has multiple requirements — including capital infusion – which make the conversion of adjusted gross revenue (AGR) related dues into equity a “complex issue”.
He, however, added that discussions were on to resolve such issues.
In line with the telecom package approved by the Union Cabinet in September 2021, Vodafone Idea has opted for the conversion of nearly Rs 16,000 crore interest on AGR and on spectrum installments into equity issuable to the government. But more than a year later, the process is yet to be completed.
Once the dues are converted into equity, the government will become the single-largest shareholder in Vodafone Idea with around 33 percent stake.
“Vodafone (Idea) has many requirements. It has a particular requirement of capital. How much capital, who will infuse? All those things are under discussion at this point of time,” Vaishnaw said Thursday.
He was speaking on the sidelines of the 5G launch of Reliance Jio and Bharti Airtel in Odisha. Union Education Minister Dharmendra Pradhan was also present at the event.
Vaishnaw added, “The responsibility of capital has to come from various sources. The company just doesn’t require conversion. It requires capital. All those things are a complex issue.”
Speaking at the event, the minister said the state-owned BSNL would start rolling out 4G services this year, which will be upgraded to 5G in 2024.
He further added while 5G services in Odisha have begun with Bhubaneswar and Cuttack, the entire state would be covered in the next two years.
Vaishnaw said the Narendra Modi government has allocated ₹5,600 crore to strengthen telecom connectivity in the state. “Hundred towers for 4G services covering 100 villages in Odisha have been launched today,” he said.
The Tele-density of Odisha is 75.71 percent, which is less than the national average of about 84.69 percent (as per TRAI report published in the month of October 2022).
Also read: SEBI clears government’s proposal to turn Vodafone Idea dues into equity