Vodafone Idea, Tata Tele won’t become PSUs: DoT
The Centre on Wednesday said the three telecom companies, namely Vodafone Idea Ltd. (VIL), Tata Teleservices Ltd., and Tata Teleservices (Maharashtra) Ltd. (TTML), which have opted to convert certain statutory dues into equity shares in favour of the government, will not become public sector undertakings.
“These three companies will not become PSUs.[They] will continue to be managed as professionally run, private companies,” the Department of Telecom (DoT) clarified in a statement, adding that the government could sell these shares at the appropriate time and thereby receive the amounts due.
On the impact of the move on the industry, the DoT said the government’s reforms and support in times of a pandemic mean that companies will be able to sustain their business. Meanwhile, MD and CEO Ravinder Takkar said the government will not take a seat on the board nor will it manage VIL. On fundraising, he said, “we hope to be back shortly to announce some of the fundraising process very, very soon.”