Telecom minister Ashwini Vaishnaw told the Rajya Sabha on Friday that the government is looking into proposals from 3 telecom companies who would like to convert their interest on deferred spectrum and adjusted gross revenue (AGR) dues into equity.
In response to a question in the Upper House about whether the government owns any stock in Vodafone, Mr Vaishnaw said that as part of the structural reforms announced in September last year, telecom companies were given a one-time option to either pay the interest on AGR dues upfront or convert it into equity.
He explained that the one-time option was offered to telecom providers to ensure that the government’s revenue was not jeopardised.
‘That option has been used by three companies. We have received and are reviewing their letters ‘Rajya Sabha was informed by the minister.
The alternative was also chosen because the telecom sector has been going through a difficult period for many years, as a result of which many companies’ balance sheets are not in excellent shape today, despite the telecom sector’s rapid expansion, he noted.
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