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News Topical, Digital Desk : Telecom company Vodafone Idea, which is drowned in debt and government dues, is now preparing to raise a loan of ₹ 2.9 billion dollars (about ₹ 25,000 crores). According to a Bloomberg report, the company is in talks with banks to strengthen the network and compete with big companies like Reliance Jio and Bharti Airtel.
India's largest public sector bank SBI (State Bank of India) can lead this loan consortium.
This loan will be a mix of domestic and foreign debt and its tenure is believed to be around 10 years. Earlier also Vodafone Idea had tried to raise debt, but banks were hesitant due to the company's weak financial position and huge dues to the government.
What has changed now? Now it is expected that the telecom sector may get relief from the government. In such a situation, Vodafone Idea is trying to raise funds again, so that it can upgrade the network and bring back the missed customers.
What is the government's stake? The government has recently increased its stake in the company to 48.99%, which has happened after converting the company's spectrum dues into equity.
Board approval has also been received The board of the company had approved raising funding (equity or debt) of up to ₹ 20,000 crore in May 2025.
By when will the deal be completed? According to Bloomberg sources, this fund raising campaign can be completed within a year and some global banks can also be a part of this consortium. This funding will help Vodafone Idea in capex (capital expenditure) and the company will be able to focus on expanding its network including 5G. This can prove to be an important step towards regaining its market share.
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