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Home / News / Business News / KM Birla offers to hand over VIL stake to government
Business

KM Birla offers to hand over VIL stake to government

KM Birla offers to hand over VIL stake to government
Written by Sneha Das
(Sourced from PTI)
Aug 02, 2021, 05:55 pm 2 min read
KM Birla offers to hand over VIL stake to government
The billionaire businessman made the offer in June in a letter to Cabinet Secretary Rajiv Gauba

The Chairman of Aditya Birla Group Kumar Mangalam Birla has offered to hand over his stake in debt-laden Vodafone Idea Ltd. (VIL) to the government or any other entity that the government may consider worthy to keep the company operational. The billionaire businessman made the offer in June in a letter to Cabinet Secretary Rajiv Gauba.

Liability
VIL had an AGR liability of Rs. 58,254 crore

According to the official data, VIL had an adjusted gross revenue (AGR) liability of Rs. 58,254 crore out of which the company has paid Rs. 7,854.37 crore and Rs. 50,399.63 crore is still outstanding. VIL along with Bharti Airtel had approached the Supreme Court for correction in the government calculations but their plea was rejected.

Information
Investors are not willing to invest in the company: Birla

In the letter, Birla, who holds around 27 percent stake in VIL, said investors are not willing to invest in the company in the absence of clarity on AGR liability, an adequate moratorium on spectrum payments, and floor pricing regime above the cost of service.

Collapse
Without government support, VIL will irretrievably collapse: Birla

"Without immediate active support from the government on the three issues by July, the financial situation of VIL will come to an irretrievable point of collapse," Birla wrote. There were no immediate comments from either the Aditya Birla group or VIL on the issue. Further, it couldn't be ascertained whether there were other communications between Birla and the government after the June 7 letter.

Investors
VIL has not yet approached any Chinese investors: Birla's letter

In September 2020, VIL had received approval from its board to raise up to Rs. 25,000 crore. However, the company has not been able to raise the funds so far. According to Birla's letter, VIL has not yet approached any Chinese investors. Foreign investors, mostly non-Chinese, are hesitating in making an investment in the company for understandable reasons.

Information
VIL's gross debt stood at Rs. 1,80,310cr till March 31

VIL's gross debt, excluding lease liabilities, stood at Rs. 1,80,310 crore as of March 31, 2021. The amount included deferred spectrum payment obligations of Rs. 96,270 crore and debt from banks and financial institutions of Rs. 23,080 crore apart from the AGR liability.

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Sneha Das <br/><i>(Sourced from PTI)</i>
Sneha Das
(Sourced from PTI)
Twitter
Sneha Das is a lifestyle writer at NewsBytes. She had started her career with NewsBytes and her work has focused on national and lifestyle news. She has previously worked as an intern with The Sakal Times, The Logical Indian, and 91.9 Friends FM. She has a Bachelor's degree in Journalism and Mass Communication from the University of Calcutta.
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