According to sources, the promoters of Vodafone Idea Limited (Vi) are unwilling to infuse adequate capital into the telco, making it unviable for the government to convert the accrued interest on deferred adjusted gross revenue (AGR) dues into equity.
The promoters, Vodafone Plc and Aditya Birla Group, have indicated a willingness to infuse around Rs 20-30 billion into the telco, which is inadequate to revive the company. Vi needs around Rs 40-45 billion for sustaining itself. As per sources, assuming that banks fund around half of the amount, the promoters have to put the rest. In the absence, of promoter funding, it will be difficult for the company to get external investors. Without promoter infusion, even banks are unlikely to support.
Besides needing funds urgently to clear its dues to large vendors such as Indus Towers, American Tower Corporation, Nokia and Ericsson, the telco has to roll out 5G services as well as expand 4G coverage and rein in customer losses to the other telcos.
