BENGALURU - Troubled Indian mobile service provider Vodafone Idea Ltd said on Friday the government ordered the company to convert into equity all the interest related to payments for spectrum and other dues owed to the government for use of airwaves.

The total amount to be converted into equity shares is 161.33 billion rupees ($1.96 billion), the mobile carrier said.

The company has been directed to issue 16.13 billion shares at a price of 10 rupees each, it added.

($1 = 82.1300 Indian rupees)

(Reporting by Nallur Sethuraman in Bengaluru; Editing by Savio D'Souza)