Outlook Business Desk
According to the ET Times , the Indian government holds a 48.99% stake in Vodafone Idea after converting Rs 36,950 crore of spectrum dues into equity shares.
Communications Minister Jyotiraditya Scindia stated that the government will not raise its stake beyond 49%, as doing so would effectively turn Vodafone Idea into a public sector undertaking (PSU).
Even after the government converted its dues into equity, Vodafone Idea still owes a large amount in adjusted gross revenue (AGR) and spectrum payments. The minister said it’s the company’s responsibility to pay these dues.
Addressing speculation, Scindia informed that there are no plans to merge Vodafone Idea with state-owned BSNL.
The minister also mentioned that Elon Musk’s Starlink has yet to meet all guidelines required to secure a satellite communication (satcom) permit in India.
Scindia expressed the government’s aim to make India Post profitable within the next five to six years.
The government turned some of Vodafone Idea’s dues into shares as part of a bigger relief plan. This move was meant to help the telecom sector and stop it from being controlled by just two big companies.
Even though the government owns a big part of the company, Vodafone Idea is still run by its original promoters — Vodafone Plc and the Aditya Birla Group.
Vodafone Idea faces the challenge of clearing its remaining dues without further government equity support, while striving to remain competitive in the telecom market.