Banking sources say the account will be declared an NPA if the telecom firm misses another interest payment by December 31.
With a net debt of 443 billion rupees as of end-March, RCom is the most leveraged among listed Indian telecom companies.
The transaction will be done on a “debt-free cash-free” basis, the companies said in their joint statement. It will give Bharti an additional 40 million subscribers.
The inter-ministerial group is likely to give in to a request for a hike in the duration of deferred spectrum payments, a move that could help increase the cash flow of telcos by Rs 55,000 crore.
The Mukesh Ambani-led telecom company recently announced plans that came bundled with another three months of free data and voice
The combined Vodafone-Idea group will be India’s largest telecom operation with almost 400 million customers, or 35% market share.
J.S. Deepak’s transfer may have been prompted by his conflict with Reliance Jio and TRAI and reflects poorly on an already controversial, crony capitalism-prone sector.
Reliance Jio clearly wants to disrupt the market. But the question is whether such disruption will happen in a fair manner where no special advantage accrues to any one player.
The government has essentially backed itself into a corner after the attorney general’s opinion last month on the legality of levying a uniform spectrum usage charge.