K M Birla offers to hand over Vodafone Idea stake to government

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New Delhi: Aditya Birla group Chairman Kumar Mangalam Birla has offered his stake in cash-strapped Vodafone Idea Ltd (VIL) to the government or any other entity that the government may consider worthy to keep the telecom operator operational.

Reportedly, in a letter dated 7 June, the billionaire businessman, who owns 27% stake in the beleaguered telecom company, extended the offer to Cabinet Secretary Rajiv Gauba.

In the absence of clarity on AGR liability, adequate moratorium on spectrum payments and most importantly floor pricing regime above the cost of service, investors are not willing to invest in the company, Birla, said in the letter.

“I want to emphasize that without immediate active support from the government on the three issues (certainly by July21′), the financial situation of VIL will come to an irretrievable point of collapse.” Birla said in the letter.

“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,” he added.

VIL had an adjusted gross revenue (AGR) liability of Rs 58,254 crore, of which the company has paid Rs 7,854.37 crore and Rs 50,399.63 crore is outstanding.

VIL and Bharti Airtel had approached the Supreme Court for correction in the government calculations but their plea was rejected.

VIL’s gross debt, excluding lease liabilities, stood at Rs 1,80,310 crore as of March 31, 2021. The amount included deferred spectrum payment obligations of Rs 96,270 crore and debt from banks and financial institutions of Rs 23,080 crore apart from the AGR liability.