Vodafone Idea Relief Package: No Immediate Call As Government Treads Carefully

The government is not expected to take an immediate decision on a relief package for Vodafone Idea (Vi), with the Centre adopting a measured and cautious approach, according to government sources familiar with the matter.

Sources said the government is careful about taking any step that could have a direct bearing on the company’s valuation, particularly given its 49% equity stake in the telecom operator following the conversion of statutory dues into equity. Any policy move, sources indicated, is being assessed not just for its fiscal impact but also for potential market implications.

Sources added that during recent discussions and internal meetings, the government reviewed Vodafone Idea’s share price performance, which has continued to display sharp volatility. The stock’s sensitivity to policy cues has reinforced the need for caution, officials added.

As a result, a final decision is likely to take time, with the government preferring to move gradually on the relief proposal and examine all options before arriving at a conclusion. Officials said there is no urgency to take a call without fully evaluating the broader consequences.

Vodafone Idea has reportedly submitted two to three proposals to the Department of Telecommunications (DoT) seeking relief. These proposals are currently under examination, though no immediate decision is envisaged, sources said.

The deliberations come post Supreme Court Decision on Vodafone Idea’s AGR reassessment pleas amounting to Rs 83,500 crore. The operator has repeatedly highlighted its funding constraints and the need for relief to maintain operations and meet regulatory obligations.

Government sources said policymakers are weighing the company’s financial position against market sensitivity, valuation considerations and long-term sector stability. The cautious stance reflects an attempt to balance support for a stressed telecom operator while avoiding unintended market distortions.