Government Is Open To a Comprehensive Package For Vodafone Idea A comprehensive package may include various alternatives to revive the company
By Teena Jose
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The government is open to the idea of a comprehensive package for the survival and revival of Vodafone Idea, besides what it has offered under a relief package for telecom companies, which includes transforming part of their dues into equity, a choice already availed by the debt-ridden telco, according to a Business Standard report.
The report stated, citing some top government sources, that though the government hasn't set any deadline for VIL to raise funds, it has asked the company to come up with a new business plan for its survival, as it hasn't decided to launch 5G services anytime soon.
A senior government official, as quoted in the news report, said that, "We want VIL to survive and to do that, we know that a more comprehensive structuring of its dues needs to be done. It takes time to find a solution. But we find no reason why its promoters cannot put in additional money. We have asked VIL to come up with a new business plan and have not set any deadline for the plan or fundraising."
According to those who are well informed of these developments, as mentioned in the report, has affirmed that a comprehensive package may include various alternatives to revive a company. It further added that, the VIL has publicly said that it is still awaiting communication from the government on converting debt into equity.
As per reports, the Department of Telecommunications (DoT) had already notified a telecom relief package last year, following the Cabinet approval, under which it suggested the conversion of dues into equity. As part of this, VIL accepted the offer but it did not move on the conversion as wanted VIL promoters or strategic investors to put in more money.
