Vodafone Idea says govt won't have a role in running telco 

Vodafone Idea’s MD & CEO, Ravinder Takkar, made it clear in a media interaction today that the government of India has no desire to run the company. This comes a day after the cellular major's board gave the go-ahead for conversion of the full amount of interest related to spectrum auction instalments and adjusted gross revenue (AGR) dues into equity.  In the new shareholding structure, the two promoters – Vodafone India and the Aditya Birla Group – will see their holding come down to 28.5 per cent and 17.8 per cent respectively, with the government set to hold 35.8 per cent; at this point, the combined holding of the promoters stands at just over 72 per cent.  “The government has told us very clearly they not do not want to run the company nor do they want a duopoly in the market. They also want the existing promoters to remain in the company,” said Takkar. According to him, the two promoters will continue to manage the company. “It is our commitment that we will continue to be a world class company delivering high quality customer experience.” Importantly, the government, through a letter from the Department of Telecommunications (DoT) has clarified that it does not want its nominee on the board. “They have said there is no intention to nominate a person on to the board, we don’t expect it either,” Takkar said quite categorically. Emphasising on the part oabout commitment again, Takkar said that engagement levels will be high. “We are committed to the business and decision making and will continue to guide it.” On the issue of fund raising, he explained there was “huge interest” from international investors. “There were three main concerns expressed. They want the government to have three players, support the reforms and also ensure there is enough liquidity in the sector,” said Takkar.     

Also read: Govt to hold 35.8% in Vodafone Idea after board approves plan