Vi Shares Soar: Government Eyes Debt Relief ₹84,000 Crore Latest

      
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Vi Shares Soar: Good news for Vodafone Idea (VI) shareholders and investors. VI company’s shares jump over 6% according to a recent report. The Indian government are considering big relief for its massive ₹84,000 Crore regulatory dues. Rises could be a lifeline for the financially stressed VI telecom operator. Let’s know about the Vi Shares jumps in detail.

Vi Shares Soar 6%
Vi Shares Soar 6%

Vi Shares Soar 6%

There is some great news for Vodafone Idea (VI) shareholders and investors, the company’s shares jumped by over 6% according to recent reports. Due to this, shares rising Indian government are a major relief for their big ₹84,000 Crore regulatory dues.

Why the Shares Soar?

This Positive share result comes from two key factors:

  • Government Intervention: Reportedly government is finding various options to help VI manage its outstanding dues; otherwise company will face bankruptcy and shutdown.
  • No Duopoly: Indian telecom Minister Jyotiraditya Scindia Has said that India’s telecom sector cannot afford a duopoly in emphasising government support for competition across the sector. This decision indicates that keeping VI afloat as a viable third telecom player.

Relief Options Highlighted Points

  • Extend payment time: Dues repayment could be stretched from 6 to 20 years.
  • Simpler interest: Only simple interest, not compound, might be charged on the outstanding amount, lowering the overall cost.
  • Small yearly payment: Vi might pay a token ₹1,000-₹1,500 crore annually until a final decision on AGR dues.
  • These steps aim to reduce Vi’s huge annual debt payments, helping prevent bankruptcy.

FAQ On Vi Shares Soar

Q: Why did Vodafone Idea (Vi) shares surge over 6% recently?

A: Vi shares surged following reports that the Indian government is considering providing significant relief on the company’s massive ₹84,000 crore regulatory dues. Positive comments from the Telecom Minister about avoiding a telecom duopoly also fueled investor optimism.

Q: Is there a plan for a smaller, temporary payment?

A: Yes, another option is for Vi to pay a token amount of ₹1,000-₹1,500 crore annually until a final, broader decision is made regarding the Adjusted Gross Revenue (AGR) dues.

Q: How could the repayment period for Vi’s dues be extended?

A: One option being considered is to stretch the repayment tenure for Vi’s dues from the current 6 years to a potential 20 years.

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