Ashwini Vaishnaw, communications and IT minister, on Thursday said the government is concerned over the delay by Vodafone Idea in raising funds. The ailing telecom operator has not been able to get either equity infusion by the promoters or funding through investors.
Of course, there is a concern because investment is supposed to come. And only after investment, the company can revive. Everyone is concerned,” Vaishnaw told FE, adding that the government is constantly encouraging the promoters to invest in the firm.
The government had in February converted Vodafone Idea’s interest dues worth `16,133 crore into equity, following assurance from the promoters that they will bring in fresh investments. Such hopes had brightened when Aditya Birla Group chairman Kumar Mangalam Birla rejoined the company’s board recently.
However, Vodafone Plc, which holds a 32% stake in Vodafone Idea, last week did not indicate any fund infusion on its part in the ailing Indian venture in its FY23 earnings. This, according to analysts, has once again raised a question mark on the company’s survival once the government’s moratorium ends in FY26.
Vodafone Plc said that the Group’s carrying value of investment in Vodafone Idea is zero. It also said that the Group is recording no further losses related to VIL. It added that the company is still in need of additional liquidity and plans to raise funds going forward.
The government is currently the single largest stakeholder with a 33.4% stake in Vodafone Idea and Aditya Birla group holds 18%.
The delay in raising funds is also delaying the launch of 5G services by the company while its competitors, Reliance Jio and Bharti Airtel, are aggressively rolling out their 5G network. Both the telecom operators have deployed over 200,000 5G tower sites and even started witnessing unique subscribers on the 5G network.
Speaking on other issues, Vaishnaw said that he does not see the need for another round of spectrum auctions in the near term. However, he said that the government is looking to resolve issues around satellite spectrum allocation – whether it should be done via auctions or administratively.
“We will soon resolve the issue regarding satellite spectrum allocation. I believe this should happen within this year,” the minister said.
On whether the government plans to regulate artificial intelligence (AI), Vaishnaw said, “AI is something that will be regulated in a global manner. There are serious discussions going on all over the world. We are also discussing it with the stakeholders, including the industry, academia and everybody on what needs to be done to create a safe internet, which will help us make sure that our children are safe.”
When asked about the delay in forming self-regulatory organisations by online gaming companies, he said the government is yet to receive any representation from the industry on this front.
On the government’s role in fact-checking news relating to itself, the minister said, “It does not affect free speech. The regulation is clearly aimed at making sure that correct facts are placed. If it is a government-related matter, only the government can tell whether it is true or not. There can not be two views on a fact.”
