The government has informed that the telcos opting for conversion of interest dues into government equity will not be turned into public-sector undertakings (PSU) and that the companies would continue to be operated by the professionals.
In addition, it has also said that the centre can sell these shares at an appropriate time and realise the amounts due. Meanwhile, Vodafone Idea (Vi), Tata Teleservices Limited (TTSL) and Tata Teleservices (Maharashtra) Limited (TTML) have opted for conversion of their interest dues into government equity.
Also, delving into the logic for allowing conversion, the government has said that with conversion of liabilities into equity/preference shares, the sector has got back the ability to invest and provide better services. Companies also retain the ability to invest so that telecom services can reach far-flung areas.
