Govt Should Not Infuse More Capital in Vodafone Idea: P Chidambaram

govt should not infuse more capital in

Vodafone Idea Limited (VIL), the third-largest telecom operator in the country, received plenty of help from the government recently. The government converted Vi’s statutory dues into equity for itself. This helped Vi in deleveraging its balance sheet. However, the work is not done yet. Vi needs more help, and the government needs to provide it to ensure that India doesn’t become a duopoly. This is what the telecom minister, Jyotiraditya Scindia was recently talking about – that India should not become a duopoly.

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On this, P Chidambaram, a senior Congress leader, shared his thoughts on social media platform X (formerly Twitter). Chidambaram said, “Duopoly is not good in any industry. Minister Scindia is right in finding a way of reviving Vodafone India to infuse more competition in the telecom industry in India. There was once a time when leading telecom companies of the world took the first steps to enter the Indian market, and these included AT&T, BT, Verizon, Etisalat, Hutchison and others. They left India because of the regulatory environment.”

“The way to revive Vi is not for government to infuse more funds (already Rs 36,500 crore) and make Vi into a government company. The way forward is to encourage a world-class telecom company to take over Vi and provide stiff competition to the two current telecom companies,” he added.

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