Govt Looking for Billion-Dollar Investor for Vodafone Idea

As Vodafone Idea struggles to secure funding for its capital expenditure amid massive dues, a report suggests that the government has come up with a new plan to save the telecom firm.

According to the Economic Times (ET), the central government is planning to bring in a strategic investor for Vodafone Idea, who can invest at least $1 billion (over Rs 8,800 crore) in the company. The government, which is the majority shareholder of the ailing firm with a 49% stake, plans to sell this new suitor about 12–13% of the company.

The report, citing sources, says the government’s plan is not to sell its own stake but to ask Vi’s promoters, the Aditya Birla Group (ABG) and the UK’s Vodafone, to dilute some of their holdings. The government will remain invested in the company for some more time, the newspaper added.

This move is said to be among several measures the government is considering to prevent one of India’s largest telecom operators from shutting down. Officials have reportedly identified possible investors, and discussions are expected to gain momentum soon.

Earlier, there were reports that the government might provide an additional moratorium to Vi to pay off its roughly Rs 83,400 crore in adjusted gross revenue (AGR) liabilities. The company currently needs to start paying these old spectrum usage charges, penalties, and interests on them, from March 2026, at around Rs 18,000 crore annually. However, a minister later denied that such relief measures were on the table.

The financially stressed carrier has repeatedly warned that it cannot stay afloat without fresh funding, as banks remain hesitant to lend. The company employs more than 18,000 people and serves nearly 198 million customers.

On its June-quarter earnings call held on 18 August, outgoing CEO Akshaya Moondra said the operator is looking beyond banks to raise funds for capital expenditure, as talks with lenders remain stuck due to AGR-related uncertainties.

Vodafone Idea has also formally asked the government to resolve the AGR dispute ahead of the March 2026 timeline, a move Moondra said could boost bank confidence and unlock much-needed financing.

Following the ET report, shares of Vi surged nearly 6% during the day but pared some gains to close at Rs 6.61 apiece, up 0.61%.