Government rules out raising stake in Vodafone Idea

Union Telecom Minister Jyotiraditya Scindia on October 9 said the government has no plans to increase its stake in Vodafone Idea (Vi), putting to rest speculation over a potential rise in ownership in the cash-strapped telecom company.

Read more: Vi seeks waiver of interest, penalties on AGR dues; files amended petition

Speaking at the India Mobile Congress 2025, Scindia reportedly ruled out any possibility of raising the government’s stake beyond the existing 49%, emphasizing that such a move would effectively convert the private telecom operator into a public sector undertaking (PSU).

He also, as per media reports, clarified that the government’s earlier move to convert statutory dues into equity was a one-time relief measure aimed at stabilizing the company’s financial position, not a step toward nationalization.

Formed by the merger of Vodafone India and Idea Cellular, Vodafone Idea has long been grappling with severe financial distress, primarily due to its massive adjusted gross revenue (AGR) liability.

As of March 2025, the company’s total AGR dues stood at ₹83,400 crore, while its cash reserves were reported at ₹6,830 crore.

Read more: Vodafone Idea names Abhijit Kishore as CEO, succeeding Akshaya Moondra

The telecom operator has been seeking relief from the Department of Telecommunications (DoT) on interest, penalties, and interest on penalties tied to its AGR dues.

Last month, Vi filed an amended petition in the Supreme Court seeking a waiver of interest and penalty on its AGR dues, while also requesting a recalculation of its liabilities. The company argued that disputed components of the dues are yet to be finalised, even as it has already cleared all undisputed amounts on a self-assessment basis. Vi said it cannot be deemed a defaulter until the principal amount is reconciled and finalised. “Until the principal amount payable is crystallised, the petitioner cannot be said to be in default requiring payment of penalty,” the company submitted, noting that both the DoT and the operator agree reconciliation is pending.

The telco also invoked the Supreme Court’s July 2024 judgment in the Mineral Area Development Authority vs Steel Authority of India case, where the court struck down certain levies and waived interest and penalties on past demands. VIL argued that the same principle should apply to AGR dues.

Read more: Relief or Rumor! Vodafone Idea shares surge despite no official word on Rs 84,000 crore AGR dues

The case is rooted in the Court’s March 2020 ruling, which upheld DoT’s calculation of AGR dues up to FY17 and barred reassessment. Despite this, DoT has raised fresh claims of ₹5,606 crore for FY17 and additional demands of ₹9,450 crore spanning FY17 and earlier. Of this, ₹2,774 crore is directed at Idea Group and Vodafone Idea (post-merger), while ₹6,675 crore has been raised against Vodafone Group for the pre-merger period.

The Supreme Court is scheduled to hear Vi’s plea on October 13, 2025.