Centre Against Merger Of Vodafone Idea And MTNL-BSNL: Report
- ByAyushi Ray | August 23, 2021
Centre against merger of Vodafone Idea, MTNL-BSNL. Due to multiple logistical reasons, the Centre may outrightly reject any proposal suggesting a merger of the debt-laden telco with state-run companies, which too have had a poor record of business management and need recurring government bailouts, Times of India reported, citing sources. The reasons cited by officers are various, some are saying it would be “privatisation of profits” and others are putting forward the number of legal issues, either way they are starkly opposite the merger. Kumar Manglam Birla, the chairman of Aditya Birla Group, had earlier written to the government saying that he was ready to “hand over stake” in Vodafone-Idea (Vi) to a government entity. He said that, with a “sense of duty” towards 27 crore customers, the telecom giant was willing to hand over its stake to Public Sector Unit (PSU), a government entity or a domestic financial entity.
He further added, “Happy to work with the government to urgently explore all possible solutions, without consideration of our private interest.” Amid an existential crisis facing the firm over Rs 50,000 crore unpaid dues towards the government, Birla also recently stepped down as chairman of Vodafone Idea Ltd. The company’s total gross debt (excluding lease liabilities and including interest accrued but not due) as of June 30, 2021, of VIL stood at Rs 1,91,590 crore, comprising of deferred spectrum payment obligations of Rs 1,06,010 crore and adjusted gross revenue (AGR) liability of Rs 62,180 crore that are due to the government.
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