Corporate Watch

Capital infusion in VIL under discussion: Vaishnaw

Debt-ridden telecom firm VIL has various requirements, including infusion of capital, and discussions on this front are going on, said Ashwini Vaishnaw

PSU Watch Bureau

Bhubaneswar: Debt-ridden telecom firm Vodafone Idea (VIL) has various requirements, including infusion of capital, and discussions on this front are going on, said Ashwini Vaishnaw on Thursday. VIL, reeling under debt burden of over Rs two lakh crore, has opted for converting about Rs 16,000 crore of interest liability payable to the government into equity, which will amount to around 33 percent stake in the company while promoters' holding will come down to 50 percent from 74.99 percent.

VIL has offered a stake to the government at a par value of Rs 10 per share

'Vodafone (Idea) has many requirements. It has a particular requirement of capital. How much capital, who will infuse? All those things are under discussion at this point of time," Vaishnaw said. VIL has offered a stake to the government at a par value of Rs 10 per share and the government is waiting for the company's shares to stabilise at Rs 10 apiece.

VIL needs capital, not conversion: Vaishnaw

"The responsibility of capital has to come from various sources. The company just doesn't require conversion. It requires capital. All those things are a complex issue," Vaishnaw said.

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