India, April 4 -- The latest big news from the Indian corporate sector is quite surprising. In extending a fresh lifeline to Vodafone Idea (Vi), the central Government has decided to convert Rs 36,950 crore of spectrum dues into equity, thus rendering itself the largest shareholder in the telecom sector company. The Government's equity holding will now be almost 49 per cent.
Let us examine the financial position of Vodafone Idea. The company reported a loss of Rs 6,600 crore in the quarter ending December 2024. Additionally, it faces significant liabilities, including spectrum dues amounting to approximately Rs 1.4 lakh crore and Adjusted Gross Revenue (AGR) dues of Rs 70,000 crore. On top of that, Vodafone Idea has a bank debt of Rs 2,300...