Government Caps Vodafone Idea Stake At 49%
The government does not intend to increase its stake in Vodafone Idea beyond 49%, Union Telecom Minister Jyotiraditya Scindia has said, clarifying the Centre’s position amid ongoing discussions about the telecom operator’s financial revival. The statement comes as Vodafone Idea continues efforts to stabilise operations and raise fresh capital.
Government Stake In Vodafone Idea Clarified
Speaking on the government’s shareholding in Vodafone Idea, Jyotiraditya Scindia said the Centre has no plan to become a majority stakeholder in the company. The government had earlier converted a portion of statutory dues into equity, resulting in a significant minority stake in the telecom operator. However, the minister made it clear that the government’s role is not to run telecom companies but to support a competitive and stable sector.
He reiterated that the objective is to ensure a healthy telecom ecosystem rather than expand state ownership in private enterprises.
Vodafone Idea Financial Revival Efforts
Vodafone Idea has been working on a financial turnaround plan, including fundraising initiatives and network expansion strategies. The company has faced financial stress in recent years due to high adjusted gross revenue liabilities, spectrum dues and intense market competition. The government’s earlier relief package for the telecom sector, including a moratorium on certain payments and equity conversion, was aimed at preventing disruption in services and maintaining industry stability.
Telecom Sector Stability And Policy Approach
Scindia emphasised that policy measures are designed to strengthen the overall telecom sector, promote investment and ensure fair competition. The government has maintained that structural reforms and a predictable regulatory environment are essential for long-term sustainability.
The clarification on the 49% stake cap signals the Centre’s intent to remain a supportive shareholder while encouraging private capital participation in Vodafone Idea’s future growth plans.
