TIL Desk/Business/New Delhi/ The Department of Telecommunications on Friday approved the long-pending merger of Bharti Infratel with Indus Towers to help both telcos, particularly Vodafone Idea, to sell their stakes in the entity to raise funds. Official sources said the approval has been given to the merger without any conditions.
The deal was stuck as DoT held the FDI approval in abeyance due to a Rs 22,000 crore withholding tax dispute between UK”s Vodafone Group and India. This approval was key for merger of the two tower companies and in turn, crucial for Vodafone Idea to divest its stake and raise funds.
The combination of Bharti Infratel and Indus Towers will create a tower company with over 163,000 towers, operating across all 22 telecom service areas. The combined entity will be the largest tower company in the world after China.
Vodafone Idea faces the most crucial survival issue to raise funds to pay AGR dues to the government. DoT has sought Rs 53,000 crore from it as pending AGR dues and so far it has paid Rs 3,500 crore and for remaining, it is assessing the amount. Airtel, which has AGR dues of Rs 35,500 crore, has paid Rs 10,000 crore but is at a relatively comfortable position.
