The Ministry of Finance has reportedly cleared a proposal to convert Vodafone Idea Limited’s (Vi) accrued interest worth Rs 161.3 billion on deferred adjusted gross revenue (AGR)-related dues to equity.

According to sources, the equity conversion has received the Ministry’s nod in line with the approved telecom relief package announced in September 2021. Now, the Department of Telecommunications (DoT) will finalise the transaction as per the relief package, after which the government will become the single largest shareholder and own around 33 per cent of Vi’s equity.

Besides, Vi’s liability of Rs 161.3 billion is the accrued interest on its accumulated licence and spectrum usage charge dues levied on AGR and deferred spectrum payments up to the financial year 2017. The telco needs to inform the DoT by September 16, 2022, if it would also opt to convert accrued interest on deferred licence fee dues for the financial years 2018 and 2019 into equity.