Explorer

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. 

ALSO READ | Nifty Hits 16000 For The First Time, BSE Sensex Rises 873 Points To Touch All-Time High Of 53,823

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. 

ALSO READ | Adani Owned APSEZ Q1 Net Profit Zooms 77% to Rs 1342 Crore, Revenue Almost Doubles On Cargo Growth

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. 

View More
Advertisement

IPL Auction 2025

Most Expensive Players In The Squad
Virat Kohli
₹21 CR
Josh Hazlewood
₹12.50 CR
Phil Salt
₹11.50 CR
View all
Most Expensive Players In The Squad
Rishabh Pant
₹27 CR
Nicholas Pooran
₹21 CR
Ravi Bishnoi
₹11 CR
View all
Most Expensive Players In The Squad
Jasprit Bumrah
₹18 CR
Suryakumar Yadav
₹16.35 CR
Hardik Pandya
₹16.35 CR
View all
Most Expensive Players In The Squad
Heinrich Klaasen
₹23 CR
Pat Cummins
₹18 CR
Abhishek Sharma
₹14 CR
View all
Most Expensive Players In The Squad
Ruturaj Gaikwad
₹18 CR
Ravindra Jadeja
₹18 CR
Matheesha Pathirana
₹13 CR
View all
Most Expensive Players In The Squad
Shreyas Iyer
₹26.75 CR
Arshdeep Singh
₹18 CR
Yuzvendra Chahal
₹18 CR
View all
Most Expensive Players In The Squad
Sanju Samson
₹18 CR
Yashaswi Jaiswal
₹18 CR
Riyan Parag
₹14 CR
View all
Most Expensive Players In The Squad
Venkatesh Iyer
₹23.75 CR
Rinku Singh
₹13 CR
Varun Chakaravarthy
₹12 CR
View all
Most Expensive Players In The Squad
Rashid Khan
₹18 CR
Shubman Gill
₹16.50 CR
Jos Buttler
₹15.75 CR
View all
Most Expensive Players In The Squad
Axar Patel
₹16.50 CR
KL Rahul
₹14 CR
Kuldeep Yadav
₹13.25 CR
View all
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

Cyclone Fengal Landfall Likely On Saturday, Orange Alert In Tamil Nadu And Andhra Pradesh
Cyclone Fengal Landfall Likely On Saturday, Orange Alert In Tamil Nadu And Andhra
Priyanka Joins Gandhis: Which Other Families Are In Parliament Together?
Priyanka Joins Gandhis: Which Other Families Are In Parliament Together?
Maharashtra CM To Be From BJP, Two Deputies, Oath-Taking Likely On Dec 2 — What We Know So Far
Maharashtra CM To Be From BJP, Two Deputies, Oath-Taking Likely On Dec 2 — What We Know So Far
Court Agrees To Hear Petition Claiming Ajmer Dargah As Shiv Temple, Summons Dargah Committee, ASI
Court Agrees To Hear Petition Claiming Ajmer Dargah As Shiv Temple, Summons Dargah Committee, ASI
Advertisement
ABP Premium

Videos

Shocking Video from Sambhal Mosque Clash Day Will Leave You Stunned | ABP NewsBreaking News: Major NIA Operation Targets Human Trafficking Network | ABP NewsRajasthan By-election: BJP Shines in First Poll After Bhajanlal Sharma's CM AppointmentBreaking News: Post-Maharashtra Election Results, Tensions Rise Within MVA | ABP News

Photo Gallery

Embed widget