Don't intend to make Vodafone Idea a PSU: Telecom Minister Scindia Exclusive

The government's stake in debt-laden telecom service provider Vodafone Idea Ltd. will not go beyond the current 49%, telecom minister Jyotiraditya Scindia told CNBC-TV18 in an exclusive conversation on Wednesday, July 2.

Scindia mentioned that there cannot be further conversion of dues into equity beyond the current 49%, else Vodafone Idea will become a PSU. He also highlighted that the government has no intention of making Vodafone Idea a PSU and increasing the equity portion is not an option either.

There is also no further discussions taking place at the next options for Vodafone Idea, the minister said.

Vodafone Idea had earlier warned that its ability to continue as a going concern is under threat beyond financial year 2026, if it does not receive further support from the government.

In April this year, Vodafone Idea converted dues worth ₹36,950 crore in to equity to the government, thereby increasing its stake in the telecom service provider to 48.99% from the 22% it held earlier.

The government is now the single largest shareholder in Vodafone Idea, although it is not classified as a promoter.

Shares of Vodafone Idea are currently trading 1.1% higher at ₹7.53.

This is a developing story.