The Government of India is currently not having any plans to raise stake in cash-strapped telecom company Vodafone Idea, said Union telecom minister Jyotiradity Scindia on Thursday.
Speaking at the India Mobile Congress 2025, Scindia ruled out any possibility to raise ownership in the telco beyond the existing 49%, emphasizing that such a move would transform the private telecom operator into a public sector undertaking (PSU).
Vodafone Idea shares were trading at Rs 9.11 apiece on the BSE, up 0.77% as of 12.10 PM on October 9.
Earlier in an April interview with The Economic Times, Scindia had said, "No, then it (Vi) becomes a public sector undertaking (PSU)." He further clarified that the government's previous conversion of statutory dues into equity was a one-time measure to provide financial relief to the company, not a step towards nationalization.
Vodafone Idea, formed by the merger of Vodafone India and Idea Cellular, has been grappling with significant financial challenges, including a massive adjusted gross revenue (AGR) liability. As of March 2025, the company's total AGR dues stood at ₹83,400 crore, with cash reserves of ₹6,830 crore.
The company has been seeking relief from the Department of Telecommunications (DoT) regarding interest, penalties, and interest on penalties associated with these dues. The Supreme Court is set to hear Vi's plea on October 13, 2025.
In response to concerns about the company's financial viability, the government is exploring alternative solutions. One such measure includes seeking a strategic investor willing to infuse $1 billion (approximately ₹8,800 crore) into Vodafone Idea in exchange for a 12-13% stake. This potential investment would allow the existing promoters, Aditya Birla Group and Vodafone Group, to dilute their holdings, while the government intends to retain its shareholding for a longer duration.
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Speaking at the India Mobile Congress 2025, Scindia ruled out any possibility to raise ownership in the telco beyond the existing 49%, emphasizing that such a move would transform the private telecom operator into a public sector undertaking (PSU).
Vodafone Idea shares were trading at Rs 9.11 apiece on the BSE, up 0.77% as of 12.10 PM on October 9.
Earlier in an April interview with The Economic Times, Scindia had said, "No, then it (Vi) becomes a public sector undertaking (PSU)." He further clarified that the government's previous conversion of statutory dues into equity was a one-time measure to provide financial relief to the company, not a step towards nationalization.
Vodafone Idea, formed by the merger of Vodafone India and Idea Cellular, has been grappling with significant financial challenges, including a massive adjusted gross revenue (AGR) liability. As of March 2025, the company's total AGR dues stood at ₹83,400 crore, with cash reserves of ₹6,830 crore.
The company has been seeking relief from the Department of Telecommunications (DoT) regarding interest, penalties, and interest on penalties associated with these dues. The Supreme Court is set to hear Vi's plea on October 13, 2025.
In response to concerns about the company's financial viability, the government is exploring alternative solutions. One such measure includes seeking a strategic investor willing to infuse $1 billion (approximately ₹8,800 crore) into Vodafone Idea in exchange for a 12-13% stake. This potential investment would allow the existing promoters, Aditya Birla Group and Vodafone Group, to dilute their holdings, while the government intends to retain its shareholding for a longer duration.
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