Union Telecom Minister Jyotiraditya Scindia on Thursday said the government has no plans to increase its stake in the cash-strapped telecom operator Vodafone Idea Ltd, ruling out any move that would convert the private entity into a public sector undertaking (PSU), according to multiple media reports, including NDTV Profit and The Economic Times.
Also Read: Vodafone Idea AGR Relief to Be Decided by Cabinet; At This Moment, There Is Nothing, Says MoS
No Move Toward Stake Increase
Speaking at the India Mobile Congress (IMC) 2025, Scindia clarified that the government's current 49 percent ownership in Vodafone Idea will remain unchanged.
"We are 49 percent equity holders in VI. At this point, and in the near future, we will not increase our stake. So that's where it will lie," Scindia told NDTV Profit at the sidelines of the IMC 2025.
The government told the Supreme Court last month that "some solution may be required", given public funds are now tied up in the carrier.
Scindia reportedly said there is a "tremendous amount of competition" in India's telecom sector and noted the presence of four carriers.
"The telecom penetration in India is extremely high, and the cost structure is the lowest in the world. We've got the lowest voice rate at 3 paisa a minute. Data is charged at Rs 9 per GB. We have a very fiercely competitive market. But the more the merrier," he said, according to the report.
In an earlier interview with The Economic Times in April, 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 nationalisation.
Vodafone Idea's Financial Challenges Continue
Formed through the merger of Vodafone India and Idea Cellular, Vodafone Idea continues to face severe financial challenges, including an adjusted gross revenue (AGR) liability of Rs 83,400 crore as of March 2025. The company’s cash reserves stood at Rs 6,830 crore during the same period.
The telecom operator has sought relief from the Department of Telecommunications (DoT) on interest, penalties, and interest on penalties related to its AGR dues. The Supreme Court is expected to hear Vodafone Idea's plea on October 13, 2025.
Also Read: DoT Defends Fresh AGR Dues Demand as Vodafone Idea Moves SC
Strategic Investment Under Consideration
Meanwhile, the government is exploring ways to ensure the company's long-term financial stability. One option under consideration is to bring in a strategic investor willing to inject around USD 1 billion (Rs 8,800 crore) in exchange for a 12–13 percent stake in the company. This potential investment would allow the existing promoters—the Aditya Birla Group and Vodafone Group—to dilute their holdings, while the government intends to retain its shareholding for a longer duration.
