Centre directed the mobile service provider to convert into equity all the interest related to payments for spectrum and other dues owed to the govt for use of airwaves.
Among the country's three major telecom players, including Bharti Airtel and Jio, the govt package was seen as a bailout for Vodafone Idea, which was on the verge of bankruptcy.
While Adani group bought spectrum in the 26 GHz band, which is not for public networks, Jio acquired the coveted 700 MHz spectrum that can provide 6-10 km of signal range.
Rules-based framework should be put in place up front for govt to exit from Vi, sell 35.8% stake to public. This should prevent future govts from treating it permanently as PSU.
Aiming to reassure investors, Vodafone Idea CEO & MD Ravinder Takkar said the govt wanted three private players in the market and promoters to run the company.
The move will result in dilution for all the existing shareholders of the company. Vodafone Group will own around 28.5% and Aditya Birla Group will have about 17.8%.
The bank loan, if it materialises, will be a lifeline for the company which hasn’t reported annual profit since Mukesh Ambani's Reliance Jio unleashed a tariff war in 2016.
The board of directors of Vodafone Idea have accepted Birla's request & Himanshu Kapania, a telecom industry veteran, has been appointed as the non-executive chairman.
Before social media, depiction of violence on news was the exception—graphic visuals were either not shown on TV or in newspapers or the images were blurred. This is no longer the case.
Neither state govts nor companies earn large profits from lotteries. However, a look at the system shows there’s ample evidence of murky dealings and financial irregularities.
The ‘idea’ Kejriwal's politics grew around was a no-holds-barred fight against corruption. That is the reason Modi govt has now tarred him and his entire party with the same paint.
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