Guidelines for telcos’ dues conversion into equity likely in a month: Official

NEW DELHI: The government is expected to come out with detailed guidelines for conversion of interest payment liabilities of telecom players into equity within a month, a senior official said on Thursday.
Under the telecom reforms package announced last year, three debt-ridden telcos — Vodafone Idea Ltd (VIL), Tata Teleservices Ltd (TTSL) and Tata Teleservices (Maharashtra) Ltd (TTML) — have proposed to convert their respective interest liabilities payable to the government into equity.
Post conversion of the liabilities, the government is projected to have a 35.8 per cent stake in VIL and around 9.5 per cent shareholding each in TTML and TTSL.
“The details of conversion of dues into equity has to come from the finance ministry. DIPAM (department of investment and public asset management) is likely to work on the details and then send it to the department of telecom (DoT). The…

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