Kumar Mangalam Birla tells govt he's willing to give up his stake in Vodafone Idea
In the letter, Birla, who holds a 27 per cent stake said, that the investors are not willing to invest in the absence of clarity on AGR liability, spectrum payments and floor pricing regime.
FollowAditya Birla Group Chairman Kumar Mangalam Birla has offered to hand over his stake in debt-laden Vodafone Idea Ltd to the government or any other entity that the government may consider worthy of keeping the company going. The offer was made in June in a letter to Cabinet Secretary Rajiv Gauba.Â
As per media reports, VIL adjusted gross revenue liability of Rs 58,254 crore, out of which the company paid Rs 7,854 crore, and Rs 50,399 crore is still pending.Â
Vodafone Idea Ltd, along with Bharti Airtel, had approached the apex court for correction in the government's calculation, but their plea was rejected.Â
In the letter, Birla, who holds a 27 per cent stake said, that the investors are not willing to invest in the absence of clarity on AGR liability, spectrum payments and floor pricing regime. He stated that without immediate active support from the government on the three issues, the financial situation of VIL would come to an "irretrievable point of collapse". The Chairman further added that it is with the sense of duty towards the 27 crore Indians connected by the company. He is willing to hand over his stake to any entity --- public sector/ government/domestic financial entity. However, there was no immediate response from either Aditya Birla Group or VIL over the matter.
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 crores and debt from banks and financial institutions of Rs 23,080 crores apart from the AGR liability.
