As per Industry insiders, the DoT (Department of Telecommunications) has authorized the Vodafone Idea merger deal. The merger adventure has been on-going for a while now and has been liable to investigation by the DoT and the media. Once the deal formally experiences, this will be the biggest merger of its kind in the telecom industry and one of the biggest mergers of an openly recorded organization lately. Nonetheless, the DoT has imposed certain conditions that go about as forerunners for the deal to be affirmed.
DoT Approves Idea-Vodafone Merger With Some Conditions
While the DoT or the Ministry of Telecommunications haven’t questioned the merger, there have been a few deferrals from the DoT from issuing a leeway attributable to the outstanding payments due from Vodafone India. Besides, the merger of Vodafone’s six backups done in 2014-15 has also prompted a few intricacies in the deal. The DoT demands that Vodafone must settle the remarkable demands of more than Rs. 8,100 crores by virtue of OSTC (one-time range charges). Vodafone India has settled Rs. 2,450 crores in this sum. However, the balance amount is pending as it has been tested by the telecom major at the telecom counsel.
The DoT was concerned about raising the interest for the balance sum due from Vodafone, as it dreaded it might be in disdain of court, i.e. the court that has requested a stay on the special payment and it has been pending in the council. If the DoT were to assure this payment, they might be held in hatred of breaking the court’s demand. The issue was pending with the DoT for some time attributable to this discount.
The DoT has an extensive variety of perspectives and deals set up to settle the issue with respect to special duty. The alternatives proposed by the controller incorporated an endeavor from Ideal Cellular Limited that it would settle the remarkable levy of Vodafone after the merger experienced. Another proposal was that Vodafone India set out a store of Rs. 2,800 crores with the DoT for the deal to be authorized with the adjust being settled after the court hearings. In spite of the fact that it is uncertain regarding what was the last condition laid by the DoT, the deal is altogether said to have been finished.
The Minister for Telecommunications, Manoj Sinha commented that “DoT has set rules for merger and acquisition. Idea Vodafone merger will be cleared without a single second delay once DoT completes all statutory formalities.”