No plans to raise stake in Vi: Telecom minister

**No Plans to Raise Stake in Vodafone Idea, Says Telecom Minister**

*By Akash Pandey | October 9, 2025, 5:20 PM*

The Indian government has confirmed that it has no plans to increase its stake in the struggling telecom company Vodafone Idea (Vi). Union Telecom Minister Jyotiraditya Scindia made this announcement at the India Mobile Congress 2025, emphasizing that raising ownership beyond the current 49% would effectively turn the private telecom operator into a public sector undertaking (PSU).

Earlier this year, in an April interview with *The Economic Times*, Minister Scindia clarified that the government’s earlier move to convert statutory dues into equity was a one-time relief measure for Vi, not an attempt at nationalization. He reiterated this position at the recent India Mobile Congress.

**Financial Challenges Facing Vodafone Idea**

Vodafone Idea, formed from the merger of Vodafone India and Idea Cellular, continues to grapple with severe financial difficulties. As of March 2025, the company’s adjusted gross revenue (AGR) liability stands at a staggering ₹83,400 crore, while its cash reserves are limited to ₹6,830 crore. Vi is currently seeking relief from the Department of Telecommunications (DoT) concerning the hefty interest penalties associated with these dues.

**Legal Proceedings and Strategic Investments**

The Supreme Court of India is scheduled to hear Vi’s plea on October 13, 2025, concerning its AGR dues. Meanwhile, the government is exploring alternative solutions to support the company’s financial recovery.

One promising strategy involves identifying a strategic investor willing to inject $1 billion (approximately ₹8,800 crore) into Vodafone Idea in exchange for a 12-13% stake. This move aims to provide much-needed capital and stabilize the company’s operations without increasing government ownership.

As the telecom giant navigates these challenges, stakeholders await further developments that could shape the future of one of India’s key telecom players.
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