Government will not take over 49% stake in Vodafone Idea, Scindia said- Company should ensure better performance

There are no plans by the government to raise its holding in Vodafone Idea (VIL). The government has no desire to make the telecom firm a public sector undertaking (PSU). This was stated by Telecom Minister Jyotiraditya Scindia on Wednesday.

Delivering a tough message to Vodafone Idea, Scindia explained to PTI-Bhasha in an interview that now the responsibility of the telecommunications firm is to perform.

The recent spectrum auction dues of Rs 36,950 crore have been converted to equity by the government. The government now has 48.99 percent shares in Vodafone Idea Limited. It previously owned a stake of approximately 22.6 percent.

It is worth mentioning here that if the government gets any additional stake now, the company can turn into a PSU, and the government can bring it under administrative control. Because the Center will then have the right to appoint the board of the company. Along with this, in such circumstances, the company will also come under the purview of CAG and other inspection bodies.

Scindia said, "Now it is their (VIL's) job to perform well. Today, the government has a 49 percent stake in the company. The government has no intention of making it a PSU. So we will continue with a 49 percent stake."