'No more conversion of equity in Voda-Idea'

Time of India

2 days ago

Jyotiraditya Scindia
Communications minister Jyotiraditya Scindia said government has no plans to provide any relief on the AGR (adjusted gross revenue) front to telecom companies after the
Supreme Court
struck down their plea for a waiver of interest and penalty.
In an interview with TOI, the minister also made it clear that beleaguered Vodafone Idea will not receive any further equity conversion from government beyond the current 49%, and it's now the company's responsibility to take care of profit and loss and the balance sheet.
Excerpts:
Struggling Vodafone Idea has come to govt time and again for support. How long can you give this long rope to the company?
Every company has to chart its own path.
Profit and loss and the balance sheet are the responsibility of the management of each company - be it BSNL, Vodafone Idea, Jio, or Airtel. Based on govt policy, we converted close to Rs 36,000 crore of Vodafone Idea's dues into equity. We are today at 49%. I do not see us increasing that equity stake in the near future, at all. It's the responsibility of each company.
How long can you wait for a turnaround? At least some bit of accountability is needed because this is public money going into saving a company...
They have to define their own path at end of the day. That's the job of CEO of Vodafone Idea.
Are you in regular touch with them?
I don't believe in meddling in a company's affairs, whether it be a PSU or where govt has a stake. But if and when they come to us, we certainly meet them and hear them out.
SC has refused relief to telcos on AGR matter. Does govt plan to bring out legislation to protect the companies from penalty and interest?
There's nothing on my table at this point, so I can't comment.
I think the Supreme Court has ruled on the matter, and that's where it stands.
.
Trai has given its recommendations On satellite communications. When will DoT approve them?
We will start processing it. The department will look at it and then take a call.
When will satcom services begin?
I can't give you a very definitive timeline, but I can assure you that we are trying to do this sooner rather than later.
Any healthy market has a mix of local and global players. Elon Musk is coming with Starlink and Amazon wants to come with Project Kuiper. Do you think it's good to have global competition?
I can only say my market is open for you. Whoever wants to come into my market, check all the boxes in terms of the rules and regulations and processes, we want you here. For me, the choice for my customers is paramount. Just like the fixed line space or the mobile space or the broadband space, similarly in satellite, I want competition. Everyone is welcome here. Tick the boxes. Hurry up and start business.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now