Union Telecom Minister Jyotiraditya Scindia revealed that the Government of India has no plans to increase its stake in Vodafone Idea, putting the speculation around the potential nationalisation of the company to rest.
Scindia ruled out any possibility of extending the ownership while speaking at the India Mobile Congress 2025, mentioning that such a move would convert the private operator into a public sector undertaking (PSU). He also clarified that the government’s earlier move to convert statutory dues into equity was a one-time financial relief measure, aimed at stabilising the company, and not a step towards nationalisation.
Vodafone Idea, which was formed by the merger of Vodafone India and Idea Cellular, has been reportedly suffering from significant financial stress. As of March 2025, the company’s total AGR dues stood at Rs 83,400 crore, while its cash reserves were Rs 6,830 crore.
Why the talks?
Vodafone has been seeking relief from the Department of Telecommunications on interest, penalties, and interest on penalties related to AGR dues. Last month, Vi filed an amended petition in the Supreme Court, seeking waiver of interest and penalties, and requesting a recalculation of liabilities. The company claimed that the disputed parts of the dues are still unresolved, even though it has paid all the undisputed amounts through self-assessment. Vi referenced the Supreme Court’s July 2024 ruling in the Mineral Area Development Authority vs Steel Authority of India case. This ruling waived interest and penalties on some earlier demands. Vi urged that the same principle should apply to its AGR dues.
The court ruling
The dispute originates from the Supreme 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 Rs 5,606 crore for FY17 and an additional Rs 9,450 crore for FY17 and earlier periods. Of these, Rs 2,774 crore is directed at Idea Group and Vodafone Idea (post-merger), while Rs 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.
In a bid to strengthen the company’s financial position, the government is exploring alternative solutions, including attracting a strategic investor willing to infuse $1 billion (around Rs 8,800 crore) for a 12–13% stake. This would allow existing promoters, the Aditya Birla Group and Vodafone Group, to dilute their holdings, while the government would retain its 49% stake. Vodafone Idea shares were trading at Rs 9.11 apiece on the BSE, up 0.77% as of 12:10 PM on October 9.