The finance ministry has cleared a proposal to convert Vodafone Idea’sRs 16,130-crore worth of accrued interest on deferred adjusted gross revenue (AGR)-related dues into equity.
The ball is now in the telecom department’s court, which has to finalise the transaction as per the package announced earlier.
“It (the equity conversion) has received the finance ministry’s nod in line with the approved (telecom relief) package,” said an official aware of the developments.
The equity conversion, which was subject to government confirmation, has been pending since January this year. It is vital for Vodafone Idea to conclude its long-pendingRs 10,000 crore external fundraise via equity as potential investors want clarity on this issue. Pehal News