“We have offered the proposal to our other large vendors, but it would depend on (respective) vendors’ policies,” Moondra said in response to a specific query on whether Vi is trying to clear its other vendor dues by issuing convertible debentures. Vi uses Indus Towers for installing radio equipment sourced mainly from Finland’s Nokia and Sweden’s Ericsson. He, though, did not specifically name the other vendors. Vi’s chief executive said the telco has offered to clear dues of its other large vendors by issuing convertible debentures on the lines of American Tower Corp (ATC) deal but is yet to hear from them. This was being cited by some as a reason for the government’s delay in the equity conversion. Vi has recently clarified that there is no rule that bars the government from taking equity in the telco, even if the company’s shares are below the par value (of Rs 10). Once converted, the government will own about 33% of Vi’s equity and become the single largest shareholder in the loss-making entity. ET reported in its October 8 edition that the government, on its part, had asked Vi to present a clear fund-raising plan before it goes ahead with the conversion, leaving the loss-making telco in a catch-22 situation. The telco in the interim had told the government that its lenders want clarity on the government shareholding before committing funds. And then we had confirmed the amount of conversion, which was agreed between DoT and us, in the month of April…we expect that this (conversion) should happen soon,” Moondra said at the company’s fiscal second-quarter earnings call with analysts. He added that Vodafone Idea had exercised the option to convert in January, which was followed by a discussion with DoT. “I also do not know exactly the reason why this is not happening. 'Lenders Seek Clarity on Govt Shareholding'
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