Kumar Mangalam Birla likely to infuse own capital into Vodafone Idea

Aditya Birla Group chairman and billionaire Kumar Mangalam Birla is expected to infuse a token sum within Rs 1,000 crore into Vodafone Idea, reciprocating to the Centre's reform package that largely intended to revive the ailing telecom sector.

Also read: Vodafone Idea, Airtel may save crores if Centre takes haircut in spectrum payments: Report

"Much of the funds will have to come in from external sources. KM Birla will put in some money, but not a significant sum while Vodafone is unlikely to pump in more money (from the UK group). Monetising the assets in Indus is really the plan," a top official close to the Vodafone Group told Economic Times.

"Clearly, investors want both the promoters to put their money where their mouth is. It is only after that that external fund-raising will happen," ET quoted the official in its report.

At present, UK's Vodafone Group Plc and the Aditya Birla Group own 44.39 per cent and 27.66 per cent, respectively, in Vodafone Idea as its co-promoters. The Vodafone Group owns 28.12 per cent in Indus Towers.

The government on September 15 gave a breather to telecom operators by giving them more time to pay dues and interest on penalties in the form of equities.

In October 2016, the Telecom Regulatory Authority of India (Trai) had recommended imposing a total penalty of Rs 3,050 crore on Airtel, Vodafone and Idea (now merged) for allegedly denying interconnectivity to Reliance Jio.

The regulator had, at that time, stopped short of recommending the cancellation of their telecom licenses saying it may lead to significant consumer inconvenience.

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