Aditya Birla Offers To Hand Over Debt-Ridden Vodafone Idea Stake To Govt
Birla stated that without quick active cooperation from the government on the three concerns by July, VIL's financial predicament will reach an "irretrievable point of collapse."
Mumbai: Aditya Birla Group Chairman Kumar Mangalam Birla has proposed to hand over his stake in debt-ridden Vodafone Idea Limited (VIL) to the government or any other body the government deems capable of keeping the firm running.
In a June letter to Cabinet Secretary Rajiv Gauba, the billionaire tycoon extended the offer.
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Investors will not spend in VIL unless there is clarity on AGR responsibility, an adequate moratorium on spectrum payments, and, most significantly, a floor pricing regime above the cost of service, according to Birla, who owns a 27 percent stake in the business.
"It is with a sense of duty towards the 27 crore Indians connected by VIL, I am more than willing to hand over my stake in the company to any entity- public sector/government /domestic financial entity or any other that the government may consider worthy of keeping the company as a going concern," Birla said in the letter as revealed by NDTV.
In the letter dated June 7, Birla stated that without quick active cooperation from the government on the three concerns by July, VIL's financial predicament will reach an "irretrievable point of collapse."
The Aditya Birla Group and VIL did not respond to requests for comment on the matter. Furthermore, it was not possible to determine whether Birla and the government had communicated after the June 7 letter.
VIL's board of directors approved an increase of up to 25,000 crores in September 2020. The company, however, has so far been unsuccessful in raising the necessary finances.
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VIL has not yet pursued any Chinese investors, according to Birla's letter. For reasonable reasons, foreign investors, particularly non-Chinese, are hesitant to participate in the company, he noted.
As of March 31, 2021, VIL's gross debt, excluding lease liabilities, was 1,80,310 crores. Apart from the AGR liabilities, the total comprised 96,270 crores in deferred spectrum payment obligations and 23,080 crores in debt from banks and financial entities.
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