Kumar Mangalam Birla Wrote To Union Govt, Offering To Hand Over Vodafone Idea Stake

Aditya Birla group Chairman Kumar Mangalam Birla has offered to hand over his stake in debt-laden Vodafone Idea Ltd (VIL). Birla has offered to hand over his stake to the government or any other entity that the government may consider worthy to keep the company operational. Birla holds around 27 per cent stake in VIL. The billionaire businessman made the offer in June in a letter to Cabinet Secretary Rajiv Gauba. According to official data, VIL had an adjusted gross revenue (AGR) liability of Rs 58,254 crore out of which the company has paid Rs 7,854.37 crore & Rs 50,399.63 crore is outstanding. VIL along with Bharti Airtel had approached the Supreme Court for correction in the government calculations but their plea was rejected. In the letter, Birla said investors are not willing to invest in the company in the absence of clarity on AGR liability, adequate moratorium on spectrum payments & most importantly floor pricing regime above the cost of service. Without immediate active support from the government on the three issues by July, the financial situation of VIL will come to an "irretrievable point of collapse," Birla said in the letter dated June 7. VIL's gross debt, excluding lease liabilities, stood at Rs 1,80,310 crore as of March 31, 2021, reported PTI. Watch the video to know more.