Vodafone Idea Eyes Funding On Government Package Boost
NDTV
Government last week approved a relief package for the cash-strapped telecoms sector, including a four-year moratorium on airwaves fees.
Vodafone Idea is confident it can reach a fundraising deal with potential investors, bolstered by a government package that provides much-needed relief to the debt-ridden mobile carrier, its chief executive officer said on Wednesday.
Vodafone Idea, with a net debt of Rs 1.91 lakh crore ($25.86 billion) and other government dues of Rs 1.68 lakh crore, had expressed repeated concerns about its ability to stay afloat without federal help.
Investors were waiting to see whether New Delhi would ensure that at least three players exist in the telecoms sector and also wanted the funding to be used for business rather than paying government dues, Ravinder Takkar, the CEO of Vodafone Idea, said in a video interview.
"With this package all of those fears to some extent have been put aside," said Takkar, without specifying the names of investors the company was in talks with or a timeline for the fundraising.
