Vi’s future in doubt as government rules out more equity conversion

The government, which is working on a relief package for Vodafone Idea (Vi), is confronted with concerns about the telecom operator’s financial viability in the absence of a waiver of its arrears on spectrum usage charges. The government has said it has no plan to convert more arrears into equity that would increase its stake in the company beyond the existing 49%.

Other options being considered, such as allowing Vi to pay the adjusted gross revenue-based arrears over 20 years, instead of the current six, may still not provide enough cash flows for sustaining company operations beyond 2028-29, said government officials. They added that various options were being explored.