Centre to decide on Vodafone Idea's debt conversion after moratorium

The decision to convert principal dues into equity, according to sources, cannot be done automatically

The government will take a call on further conversion of Vodafone Idea’s (Vi’s) existing debt into equity only after receiving a request for this from the company, according to industry sources.

 As part of the telecom reforms package approved by the Union Cabinet in September 2021, the government had allowed financially stressed telecom companies to convert a part of their debt owed to the government into equity. 

 In February 2023, after 16 months of discussions, the government had assented to Vi converting its Rs 16,000 crore worth of interest liability payable to the government into equity. 

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