Takkar reiterated that the company's existing promoters and management will continue to be in charge of the company. There will be no government nominees on the board either.
Currently, the Aditya Birla group holds around 27.7 per cent while Vodafone Group holds 44.3 per cent in the telco
The company informed the DoT that it will not avail the option of conversion of interest on deferred spectrum and AGR dues into equity.
It is learnt that the letter of acceptance was sent by the company to the department of telecommunications (DoT) last week
Telcos have been given time till October 29 to communicate whether they wish to avail a moratorium on payment of spectrum dues and AGR
Bharti Airtel, Vodafone Idea, and Reliance Jio get 3 months to inform DoT on equity conversion
As of now, there's no clarity on whether the government stake would be limited to 26 per cent or if it could go up much further
The telecom relief package has offered the ailing telecom service provider only a breather; it will have to earn its way to the longer-term policy benefits
The government budgeted Rs 1.33 trillion as non-tax revenues from the telecom sector in 2020-21, but only Rs 34,000 crore could be realised
Valuation gets a leg-up after bailout package
The move has been questioned by many analysts who say that if both options are taken, it will turn VIL into a government company
The government also accepted taking equity as payment for dues
The government has always maintained the telecom sector should not become a duopoly and at the same time the relief measures should not be given to one company
It's now for the telcos to strengthen their finances
The Union Cabinet may consider on Wednesday a moratorium on payment of spectrum dues by telecom firms as part of a package for the sector aimed at giving relief to companies
'In a do-or-die effort, Mr Mittal's target is an ARPU of at least Rs 200 by the end of this financial year', says the author
Telecom regulator Trai on Tuesday recommended a slew of measures, including fixing minimum broadband speed at 2 megabit per second, to promote internet connectivity and increase connection speed.
Fund raising mainly to make payments towards AGR-related liabilities
Duopoly in telecom will hurt both consumers and govt