The Indian government has ordered Vodafone Idea to convert all the interest it owes to the
government into equity in the firm.
The move is the latest in the rescue attempts to save Vodafone Idea, a joint venture between
the British telecom giant Vodafone Group and local billionaire Kumar Mangalam Birla’s
conglomerate, which owed the Indian government about $2 billion for spectrum and other dues.
In 2021, the Indian government approved a rescue package for the debt-ridden telecom firms in
the country and reserved rights to convert interest on them into equity at a later date.
Last year, Vodafone Idea’s board approved a plan to give the Indian government a 36% stake in
the company.
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