Kumar Manglam Birla, the chairman of Aditya Birla Group, had earlier written to the government saying that he was ready to “hand over stake” in Vodafone-Idea (Vi) to a government entity.
The government is reportedly against merging Vodafone Idea with MTNL and BSNL.
Due to multiple logistical reasons, the Centre may outrightly reject any proposal suggesting a merger of the debt-laden telco with state-run companies, which too have had a poor record of business management and need recurring government bailouts, Times of India reported, citing sources.
“How can we even allow this. It’s almost like having privatisation of profits, and nationalisation of losses?” a senior officer told the publication.
Moneycontrold could not independently verify the report.
Read: Kumar Mangalam Birla ready to hand over Vi stake to govt entity
Another officer said that number of legal issues make it difficult to merge VI with MTNL and BSNL.
Kumar Manglam Birla, the chairman of Aditya Birla Group, had earlier written to the government saying that he was ready to “hand over stake” in Vodafone-Idea (Vi) to a government entity.
He said that, with a “sense of duty” towards 27 crore customers, the telecom giant was willing to hand over its stake to Public Sector Unit (PSU), a government entity or a domestic financial entity.
“Happy to work with the government to urgently explore all possible solutions, without consideration of our private interest,” he said.
Amid an existential crisis facing the firm over Rs 50,000 crore unpaid dues towards the government, Birla also recently stepped down as chairman of Vodafone Idea Ltd.
The company’s total gross debt (excluding lease liabilities and including interest accrued but not due) as of June 30, 2021, of VIL stood at Rs 1,91,590 crore, comprising of deferred spectrum payment obligations of Rs 1,06,010 crore and adjusted gross revenue (AGR) liability of Rs 62,180 crore that are due to the government.
