Kumar Birla open to govt stake in Vodafone-Idea
VIL plans to raise Rs 25,000 cr to sustain operations, pay regulatory and governmental dues
image for illustrative purpose
Kumar Manglam Birla, chairman of Aditya Birla Group, has written to the Cabinet Secretary saying that he is ready to hand over his stake in Vodafone-Idea to any government entity.
In a letter to Cabinet Secretary Rajiv Gauba on June 7, Birla said: "With a sense of duty towards 27 crore Indians connected with Vodafone Idea, Birla is willing to hand over his stake to public- sector unit (PSU), a government entity or any domestic financial entity, or any other entity that the government may consider worthy of keeping the company as a going concern."
Birla said that VIL has been trying to raise Rs 25,000 crore to sustain VIL operations and pay regulatory and governmental dues. He said that foreign investors wanted to see a clear government intent to have a three-player telecom market. In the letter, Birla sought clarity on adjusted gross revenue (AGR), adequate moratorium on spectrum dues and floor pricing adding that without immediate and active government support VIL's operations will be at an "irretrievable point of collapse".
He also said that investors have also sought clarity on these issues. Birla, who holds around 27 per cent stake in VIL, said: "Investors are not willing to invest in the company in the absence of clarity on AGR liability, adequate moratorium on spectrum payments and most importantly floor pricing regime above the cost of service."
