No Plans to Convert Vodafone Idea into PSU, Confirms Telecom Minister
Government clarifies it will not increase its stake in Vodafone Idea beyond 49%, and there are no plans for the operator to become a public sector unit (PSU).
No further equity infusion for Vodafone Idea
Telecom Minister Jyotiraditya Scindia has confirmed that the government will not infuse additional equity into Vodafone Idea (Vi), capping its stake in the telecom operator at 49 percent.
- The minister clarified that converting Vodafone Idea’s dues into further equity would push the government’s stake beyond 49 percent, which could result in the company becoming a public sector undertaking (PSU), a scenario the government is keen to avoid.
This statement effectively shuts down any speculation about the government’s plans to take a controlling stake in Vi or transform it into a state-run entity.
No PSU status for Vi
Scindia emphasized that the government has no intentions to convert Vodafone Idea into a PSU, further solidifying the government’s stance on maintaining a limited role in Vi.
- The minister noted that there are no ongoing discussions about further equity conversions or other options for Vi, underscoring the government’s current position regarding the company’s future.
Vi’s financial struggles and equity conversion
In April 2025, Vodafone Idea had converted ₹36,950 crore of dues into equity, which increased the government’s stake from 22% to 48.99%.
- This move made the government the largest single shareholder, but not a promoter of the company.
- Despite this, Vi has faced continued financial struggles, with the company warning that its ability to continue as a going concern would be in jeopardy beyond FY2026 if it does not receive further support.
Bharti Airtel’s equity proposal under review
Regarding Bharti Airtel, Scindia confirmed that Airtel’s request to convert its deferred statutory dues into equity is currently being reviewed by the Department of Telecommunications (DoT) and the Ministry of Finance.
- Scindia acknowledged that every operator has the right to request equity conversion under the telecom reforms package of 2021.
- Airtel’s request is under analysis, and a decision will be made once the review process is complete.
This move comes as part of the government’s relief package to assist the telecom sector by allowing operators to convert interest on deferred dues into equity.
