Scindia Says Government Not Looking To Increase Stake In Vodafone Idea
The minister said there is a "tremendous amount of competition" in India's telecom sector and noted the presence of four carriers.
The government will not increase its equity stake in troubled carrier Vodafone Idea Ltd., Union Telecom Minister Jyotiraditya Scindia said on Thursday.
"We are 49% equity holders in VI. At this point, and in the near future, we will not increase our stake. So that's where it will lie," Scindia told NDTV Profit at the sidelines of the India Mobile Congress 2025.
The government has become the single largest shareholder in Vodafone Idea after acquiring shares worth Rs 36,950 crore in March against outstanding spectrum auction dues. The government told the Supreme Court last month that "some solution may be required", given public funds are now tied up in the carrier.
Scindia said there is a "tremendous amount of competition" in India's telecom sector and noted the presence of four carriers.
"The telecom penetration in India is extremely high, and the cost structure is the lowest in the world. We've got the lowest voice rate at 3 paisa a minute. Data is charged at Rs 9 per GB. We have a very fiercely competitive market. But the more the merrier," he said.
Vodafone Idea owes more than Rs 83,000 crore in AGR dues to the government at present, of which the company has sought a waiver on Rs 45,000 crore.
The arrears have hung over the joint venture formed by the merger of the British firm Vodafone Group Plc's local unit with billionaire Kumar Mangalam Birla’s Idea Cellular Ltd. Vodafone Idea hasn’t reported a quarterly profit since 2016.
In September, the company sought a waiver of penalty and interest on the adjusted gross revenue demand of Rs 9,450 crore in its petition. The company has challenged the additional AGR demand issued by the Department of Telecommunications, which was pending until the financial year 2019.
