No plans to raise stake in Vi: Telecom minister
What's the story
The Indian government has no plans to increase its stake in the struggling telecom company, Vodafone Idea (Vi). Union Telecom Minister Jyotiraditya Scindia made this announcement at the India Mobile Congress 2025. He said raising ownership beyond the current 49% would turn the private telecom operator into a public sector undertaking (PSU).
Information
One-time relief measure
In an April interview with The Economic Times, Scindia had clarified that the government's earlier move to convert statutory dues into equity was a one-time relief measure for Vi and not an attempt at nationalization. He reiterated this stance at India Mobile Congress 2025.
Financial challenges
Vi's financial troubles
Vi, a merger of Vodafone India and Idea Cellular, has been facing major financial problems. The company has a huge adjusted gross revenue (AGR) liability of ₹83,400 crore as of March 2025 and cash reserves of ₹6,830 crore. It is seeking relief from the Department of Telecommunications (DoT) on interest penalties related to these dues.
Legal proceedings
Strategic investor sought for $1 billion investment
The Supreme Court is scheduled to hear Vi's plea on October 13, 2025. Meanwhile, the government is looking for alternative solutions to address the company's financial woes. One such solution is finding a strategic investor ready to invest $1 billion (around ₹8,800 crore) in Vodafone Idea for a 12-13% stake.