The Centre has ruled out any further equity infusion in Vodafone Idea (Vi) Limited, capping its stake in the telecom operator at 49 percent, Telecom Minister Jyotiraditya Scindia said in an interview with CNBC-TV18 on Wednesday. The minister reportedly clarified that converting additional dues into equity would push the government's shareholding beyond 49 percent, effectively turning Vodafone Idea into a public sector undertaking (PSU)—a scenario the government is keen to avoid.
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No PSU Status for Vi, Says Minister
The government has no intention of making Vodafone Idea a PSU, and increasing the equity portion is not an option either. There are also no further discussions taking place on the next options for Vodafone Idea, the minister was quoted as saying in the report dated July 2, 2025.
"There cannot be further equity conversion by the government to more than 49 percent. Our intent is not to make Vi a PSU," Scindia was quoted as saying.
Vi Equity Conversion
In April this year, Vodafone Idea had converted dues worth Rs 36,950 crore into equity, increasing the government's stake from 22 percent to 48.99 percent. This move made the government the single largest shareholder in the company, though it has not been classified as a promoter.
The equity conversion provided temporary financial relief to the telecom operator, which has been struggling with high debt and continued losses. However, Vodafone Idea had earlier warned that its ability to continue as a going concern is under threat beyond FY2026 if it does not receive further support from the government.
Also Read: Retail Shareholders Raise Alarm Over Vodafone Idea’s Future at EGM
Bharti Airtel's Equity Proposal
In the case of Bharti Airtel, the Telecom Minister confirmed that the Department of Telecommunications (DoT) is currently examining Bharti Airtel's application for the conversion of statutory dues into equity. The request is also being reviewed by the Ministry of Finance.
"Bharti has submitted an application for equity conversion which is being analysed by both the DoT and the Ministry of Finance. Every operator has the right to ask us for equity conversion. Bharti has exercised that right. We are examining it, and the Finance Ministry also will have to examine it," Scindia was quoted as saying in the report.
Also Read: Airtel’s Request for Equity Swap Likely to Be Rejected by DoT
Scindia reportedly noted that he will take a view on the matter once the analysis by the DoT is complete. Bharti Airtel's move comes under the government’s relief package for the telecom sector, which allows telcos to convert interest on deferred dues into government equity.
Bharti Airtel formally approached the DoT earlier this year, seeking the conversion of its deferred government dues into equity under the 2021 telecom reforms package.
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