The government could pick up some stake in the beleaguered Vodafone Idea Ltd by converting a part of its dues.
This is in line with the centre's effort to keep investors confident about the telco's future.
A decision could be taken by the Cabinet on Wednesday, but there’s no certainty, a report by The Economic Times said. The government may also keep the option of converting more of those dues into equity after four years, subject to conditions, it added.
Vodafone Idea's total gross debt as of June 30 was Rs 1.92 lakh crore, comprising deferred spectrum payment obligations of Rs 1.06 lakh crore and AGR liability of Rs 62,180 crore that are due to the government.
Debt from banks and financial institutions was Rs 23,400 crore. A report by Business Today said a consortium of banks led by State Bank of India (SBI) have called on the Indian government to give debt-laden Vodafone Idea more time to clear its tax dues and spectrum fees.