Vodafone is planning to infuse $3 billion in India amid rising competition from Reliance Jio and upcoming spectrum auction

In the backdrop of increasing competition from Reliance Jio and upcoming mega spectrum sale, Vodafone is planning to step up the heat by raking in around $3-billion, or Rs 20,100-crore, in its India unit.

Vodafone is looking at a debt replacement plan by equity infusion in India. Vodafone India's standalone net debt for 2015-16 was at Rs 81,500 crore.

"Overseas market conditions make it favourable to replace the debt here with equity as the return on equity is higher here and it will cut the debt servicing costs," ET quoted one of the sources as saying.

Meanwhile, Vodafone told ET the company has consistently invested in India and is today the largest foreign direct investor in the country. It added there's no change in its IPO timetable.

It is expected Vodafone will aggressively bid in the spectrum auction as it is lagging behind Reliance Jio and Bharti Airtel in pan-India holdings.

India will put on auction spectrum valued at Rs 5.6 lakh crore at the reserve price, starting October 1, including airwaves in the 4G and 3G bands. Besides 4G, analysts said Vodafone may buy 3G airwaves to plug coverage gaps.

"The company is evaluating if it should further push back its IPO as the market conditions are bleak for the next few months," one of the people told ET.

"We continue to prepare for a potential IPO and there has been no change in our timetable," Vodafone said in an emailed response to an ET query.

Also, Vodafone India is facing competition from Reliance Jio, which is offering tariff plans on cheaper prices.