Vodafone Idea's debt conversion may be the last resort for government

Centre not keen on upping stake, wants telco to raise investments on its own

The central government will study the matter of further converting Vodafone Idea’s (Vi’s) dues into equity only if no other options are available, officials said. The Centre is not keen to raise its stake in the financially beleaguered telecommunications (telecom) operator and wants it to first raise investments on its own, they added.

 

Since early 2024, Vi Chief Executive Officer Akshaya Moondra has repeatedly said the terms of the 2021 financial relief package allow it to seek further conversion of dues owed to the government into equity. Regarding his latest letter to the Department of Telecommunications (DoT) seeking the same,