Govt gets 33% stake in Vodafone Idea, promoters to invest as well

Centre clears Rs 16,133-crore dues conversion into equity

After a long wait, Vodafone Idea (Vi) has been able to secure a lifeline as the Centre on Friday approved the conversion of the telco’s dues linked to interest on spectrum and adjusted gross revenue (AGR) worth Rs 16,133 crore into equity. With this, the government will have a 33 per cent stake, making it the biggest shareholder in the financially-stressed telecom joint venture between UK’s Vodafone and Kumar Mangalam Birla-owned Aditya Birla Group.    

The development comes nearly 13 months after the Vi board cleared the interest conversion. Even as the Union Cabinet had cleared a telecom package including conversion