State Bank of India (SBI) along with some other banks have appealed to the Government of India to give more time to Vodafone Idea to repay the loan. Last year, a court had ordered this telecom company to pay its dues quickly. Vodafone-Idea currently has a debt of Rs 1.8 lakh crore.
Senior officials of SBI and representatives of the Indian Banks' Association (IBA) met officials from the Finance and Telecommunications Departments this month, according to a Reuters news. During this, the bank officials proposed to the government that Vodafone-Idea should be given immediate relief for the payment of dues. Government officials said that we have discussed this matter with banks, but the issue is whether the Finance Ministry is ready on these proposals or not.
Kumar Mangalam Birla wrote a letter to the government to save the company
Aditya Birla Group chairman Kumar Mangalam Birla had offered to hand over his stake in debt-ridden Vodafone Idea Limited (VIL) to the government or any such entity. Birla had also written a letter to the government in this regard in the month of June. He had said that in the absence of immediate active support from the government, the financial condition of VIL would reach the verge of sinking, which would be difficult to handle.
Birla had said that we have a duty towards the 27 crore Indians associated with VIL. In view of this, I am ready to hand over my stake in the company to the government or any such entity at the behest of the government which is capable of continuing the operations of the company. Kumar Mangalam Birla resigned as the non-executive chairman and direct of VIL after pleading with the government to save the company.
The government is considering giving a big package to the telecom sector
Vodafone Idea owes banks Rs 23,000 crore, AGR dues of Rs 61,000 crore and deferred spectrum payments of Rs 96,3000 crore. In this way, there is a total outstanding of Rs 1.8 lakh crore. Apart from this, bank guarantee and spectrum and AGR dues of several thousand crores and interest payment on bank loans are pending.
The government is considering giving a comprehensive package to help the telecom industry. In fact, since the entry of Jio in the telecom sector in 2016, the condition of other companies is bad. Reliance India Limited's CEO Mukesh Ambani's company Jio, after coming to this sector, gave customers the facility of free voice calls and internet data. As a result, a large number of consumers started taking the services of the company. This had a direct impact on the already existing companies in the telecom sector and their earnings kept on decreasing quarter by quarter.