The government is reported to be considering picking up token stake in Vodafone Idea Limited (Vi) by converting a part of the dues owed by the company. Doing so would help instill confidence in investors about the future of the ailing telecom operator.

The quantum of the token stake and whether it would be in the form of equity shares or any other instrument is yet to be decided. However, there will be no infusion of funds from the government and only some of the dues owed by the company could be converted to create the token stake to be held by the government.

As reported, the government may also consider the option of converting more dues owed by the company into government stake after a period of four years, subject to certain conditions.