 "The response of the government has been consistent. They said they want this sector to be healthy, it is a very strategic sector, too important for the country. They have said they want to see 3 private players and one public sector player in this se")
The government has no desire to run Vodafone Idea or in appointing a board member, said the company's top executive a day after the telecom firm agreed to convert interest on deferred statutory dues.
"The government is very clear. They want us to run the company. They want the promoters to run the company," said Ravinder Takkar, managing director and chief executive officer of Vodafone Idea at a media conference on Wednesday. "I'm saying that based on personal conversation with the government."
The government will own 35.8 per cent in in the financially-stressed firm. This makes the government the single-largest shareholder in Vi, a joint venture between the Aditya Birla group and UK-headquartered Vodafone.
Takkar he expects the entire process to conclude in the coming months. Given that most of the company's financial committment is to the government, "it was clear to us that converting some of debt to equity is a good option for the company to reduce its debt going forward".
Vodafone Idea is not the only telco in which the government is picking up a stake. It would also own 9.5 per cent in Tata Teleservices (Maharashtra) Limited (TTML) through the same route, according to announcements made on Tuesday. The latest development implies government holding in four telcos in the country including two state-owned firms Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL).
