Vodafone Idea (Vi) must clear all the dues to the government. Communications Minister Jyotiraditya Scindia has ruled out any further conversion of Vodafone Idea’s statutory dues into equity, saying the government does not intend to turn the financially stressed telecom operator into a public sector entity.
In an interview with The Economic Times, Scindia clarified that the government’s 49 percent stake in Vodafone Idea will not be increased. “Then it becomes a PSU,” he said, adding that the company must address its remaining adjusted gross revenue (AGR) and spectrum dues independently.
“The relief proposal of equity was utilised, and I have converted till 49 percent, otherwise you become a PSU. What is due to the government is due to the government, it is incumbent upon the players to pay that to the government,” Scindia was quoted as saying.
In an interaction with Mint, Scindia also said there are no plans to merge the company with the state-owned Bharat Sanchar Nigam Limited (BSNL). Speaking about the telecom sector, Scindia—who is set to complete one year as a minister in the government—reportedly said that operators have reached a level of healthy bottom lines and have higher average revenue per user (ARPU), following previous relief measures from the government.
The minister also dismissed any possibility of a merger between Vodafone Idea and BSNL.
On the satellite communications front, Scindia reportedly said Starlink has not yet secured a licence to operate in India as it has not fulfilled all regulatory and security requirements.
“The process is ongoing. The minute they meet all conditions — including setting up gateways in India and registering user terminals locally — we are ready to issue the licence,” he said, as per the report. The Department of Telecommunications (DoT), along with other agencies including IN-SPACe and TRAI, are involved in the clearance process. Spectrum allocation for satellite services will be done administratively and uniformly across players.
“It’s not only related to DoT, but also to internal security – gateways have to be in India, any user terminal has to be registered in India…the minute they check all the boxes, which I also hope will be soon, the licence should be given.”
BSNL Posts Rare Profit, Pushes Ahead with 4G
Scindia hailed BSNL’s turnaround, noting it posted a net profit of Rs 262 crore in the December quarter — its first in 18 years. He credited the achievement to ongoing structural reforms and highlighted the progress in BSNL’s 4G rollout, with over 90,000 towers installed and 76,000 commissioned so far. The target is to install 100,000 towers by July.
He emphasised that 5G services will follow only after the 4G network stabilises and meets quality of service benchmarks. The minister ruled out allowing foreign vendors to participate in BSNL’s 5G rollout, reiterating the government’s commitment to indigenous 4G/5G technologies.
“We have developed our own core and RAN. Why should we forgo our indigenous technology for foreign players? India is now in a select group of 4-5 countries that have developed 4G/5G technology. We will be competitors to foreign companies. We want to take our technology to the world,” the Minister said.
Replying to a question on simultaneous 5G launch with 4G, Scindia reportedly said, “Once the 100,000 towers will be put up and the network is stabilised, once we see that the QoS is up to the mark, and then we start switching. Moving from 4G to 5G is not that difficult.”
Turning to postal services, Scindia said efforts are underway to make India Post financially viable within the next five to six years. Currently, the postal department incurs an annual expenditure of Rs 35,000–36,000 crore, against revenues of Rs 12,000–14,000 crore.
“My goal is to transform India Post from a cost centre into a profit-making entity,” he stated.
Scindia reiterated the government’s commitment to a consumer-centric, technology-driven, and player-agnostic approach across the telecom and communication sectors.
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