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    Vodafone Idea jumps 17 percent: Here's why

    Vodafone Idea jumps 17 percent: Here's why

    Vodafone Idea jumps 17 percent: Here's why
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    By Yashi Gupta   IST (Updated)

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    Vodafone Idea share price surged over 17 percent on Thursday after the Chairman of Aditya Birla Group (ABG) Kumar Mangalam Birla met with Telecom Minister Ashwini Vaishnaw. The VIL stock price hit the day's high of Rs 7.15 apiece.

    Vodafone Idea share price surged over 17 percent on Thursday after the Chairman of Aditya Birla Group (ABG) Kumar Mangalam Birla met with Telecom Minister Ashwini Vaishnaw. The VIL stock price hit the day's high of Rs 7.15 apiece.
    According to sources, Birla spoke with Vaishnaw on the health of the telecom sector and discussed an urgent need for government intervention. The meeting happened a month after Birla stepped down as a chairman of the cash-strapped telco VIL.
    According to sources, the government is now mulling over some relief measures not just for the company, but for the entire sector.
    Nick Read, the Global Head of Vodafone Group, who had earlier said the parent company will not infuse any liquidity in the cash-strapped telco, is also in the country right now.
    VIL, which is a partnership of ABG and Vodafone Group, is the country's third-largest telecom operator. But it is due to pay dues worth Rs 51,400 crore after the Supreme court ordered non-telecom revenues to be included in calculating statutory dues. The court also refused its plea to recalculate the arithmetic errors in the AGR dues.
    While the company said it is not trying to wriggle out of paying the dues, but if the arithmetic errors in the dues were not rectified the telco would have to shut its shop.
    Considering this, Birla had written to the government saying he is ready to hand over his stake in the telco to any government entity to keep the company a going concern.
    Days after the news became public, Birla had stepped down as the Non-Executive Director and Non-Executive Chairman of the board of VIL.
    He had said the operations of Vodafone-Idea would be at an "irretrievable point of collapse" if it did not receive immediate and active support from the government.
    At the time of writing, the shares of Vodafone-Idea were trading 17.24 percent higher at Rs 7.14 on BSE.
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