CHENNAI: Cash-strapped telecom service provider Vodafone Idea Ltd (VIL) has received ministerial clearances to raise up to Rs 15,000 crore through the foreign direct investment (FDI) route, with the proposal likely to head up to the Cabinet for consideration soon.
While the company declined to offer any comment, sources said that the approvals received for the company’s FDI proposal are an “enabling” action following the decision of its Board of Directors in September last year to raise up to Rs 25,000 crore through a mix of debt and equity issues. The Board had decided that the maximum amount that can be raised through either of these routes (whether debt or equity) shall be capped at Rs 15,000 crore each.
However, no specific funding deal has been confirmed as of yet, the source noted. According to current FDI rules, 100% FDI is allowed in telecom sector, with automatic approval allowed up to 49%. The foreign shareholding in VIL already stands at 53.57%, which means that all additional FDI that results in an increase in foreign shareholding will need to go through the government approval process.
AGR hearing likely today
The company, along with other telecos liable for AGR dues, has also approached the Supreme Court seeking correction in DoT’s alleged “errors” in the calculation of these dues. The SC bench had reserved its orders on Monday and is likely to pronounce its verdict on Friday.