No Plan to Convert Vodafone Idea into PSU, Says Telecom Minister: Report

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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Also Read: Govt Rules Out Relief for Vodafone Idea at the Moment, Reaffirms Commitment to Fair Competition

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.