Tata Teleservices has also decided to sell its stake to the government to get rid of Adjusted Gross Revenue (AGR) on the lines of Tata Vodafone-Idea. Tata has decided to give a share to the government in lieu of Adjusted Gross Revenue.
With this decision of Tata Teleservices, the government will now hold 9.5 percent stake in this company. In fact, the fee paid to the government has become equal to 9.5 per cent of the company’s shares.
But Why Goverment is showing Interest in Teleservices?
Let us tell you that the Modi government at the Center had given this proposal to the telecom companies as an option to pay the AGR dues. Companies like Airtel, Reliance have not chosen this proposal of the government. These companies are ready to pay their share of AGR. At the same time, Vodafone-Idea and Tata Teleservices have decided to make the government a partner in their company. This deal will be approved after the approval of the Department of Telecommunications.
Telecom operator Vodafone Idea Company has started preparing to convert its debt into equity. This will also include interest on spectrum auction AGR. After this deal, the government will have 36 percent of the company’s shares with the government. This means that the government will have the highest shareholding in the company. On the same lines, the government will have 9.5 percent stake in Tata Teleservices Company.
Voda Idea is now Nationalised company?
The government’s track record in running a telecom company has been poor.
We know the condition of BSNL and MTNL. Then why the government is so interested in Voda Idea, it is quite an astonishing question. Maybe the government is doing this only to bail out these companies. We had seen how the government had taken a similar decision to get Yes Bank out of the crisis. Many people get unemployed due to the closure of such a big company. This also hurts the image of the government.
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