Federal government will release standards quickly for conversion of interest payment fees of telcos into equityNew Delhi: Government is anticipated to come out with in-depth guidelines for conversion of interest payment liabilities of telecom gamers into equity within a month, a senior authorities said on Thursday.Under the telecom reforms bundle announced in 2015, 3 debt-ridden telcos - Vodafone Idea Limited (VIL), Tata Teleservices Limited (TTSL) and Tata Teleservices (Maharashtra) Limited (TTML) - have proposed to convert their particular interest liabilities payable to the federal government into equity.Post conversion of the liabilities, the government is projected to have a 35.8 percent stake in VIL and around 9.5 per cent shareholding each in TTML and TTSL.
The information of conversion of fees into equity has to come from the finance ministry.
DIPAM (Department of Investment and Public Possession Management) is most likely to deal with the information and then send it to the Department of Telecom (DoT).
The process needs to not take more than a month, the senior federal government authorities said.VIL has actually approximated the interest liability charges payable to the government at around Rs 16,000 crore, TTSL at about Rs 4,139 crore and TTML at around Rs 850 crore.On Wednesday, Telecom Minister Ashwini Vaishnaw said that even after conversion of fees into equity, the liability to pay past and future financial obligation will remain with the telecom companies.
Federal government will remain an investor just.
The companies will be run by specialists.
All the debt liabilities will stay the responsibility of the business.
The companies have offered us commitment, Vaishnaw had actually stated on Wednesday.
VIL has actually proposed to assign preferential shares to the government at Rs 10 per share, which according to experts is at 58 per cent premium based upon the share rate at the appropriate date of August 14, 2021.
On whether liability of payment for upcoming spectrum auction will be on the government, Mr Vaishnaw had actually said the business will have the entire obligation for the payment for radiowaves and there will be no problem on the government.He had also stated the government has just extended a helping hand as part of the telecom reforms bundle to lower burden on them, save and develop jobs along with ensure healthy competitors in the industry.
We will exit from the companies at a suitable time.
Federal government will not interfere in daily operations of the business.
They will continue to be expertly handled, Mr Vaishnaw had said.The telecom ministry, on Wednesday, had also said the three companies will not end up being public sector undertakings even after the government gets a stake in them.