INSUBCONTINENT EXCLUSIVE:
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
