Union Telecom Minister Jyotiraditya Scindia, in an exclusive interaction with CNBC-TV18 on Monday, said the government is awaiting a formal request from Vodafone Idea before moving ahead on any relief measures, adding that the Supreme Court judgement is recent and needs careful evaluation.
“DoT is waiting for a formal request from Vodafone. Govt will make a recommendation after evaluating Vodafone Idea’s proposal,” Scindia said.
He noted that the ministry is currently examining the legal boundaries set by the Court. “Judgement needs to be evaluated from a point of view of what can be done and what cannot be done. We cannot cross the border of the SC judgement,” he added.
Scindia indicated that the government may be able to complete its assessment and issue recommendations within a couple of weeks, with the relief package contours likely to be announced by year-end.
Emphasising that the Supreme Court order pertains specifically to Vi, he said, “SC judgement is for Vodafone Idea and therefore any govt recommendations are for Vodafone Idea. Any other company which wants similar relief will have to approach the Supreme Court.”
Scindia also clarified that Bharti Airtel has not sought any relief on AGR dues.
“If Bharti Airtel pursues similar relief, it would be for the court of the land to take a decision,” he said.
Vodafone Idea’s capex plan strong; Govt won’t raise stake
The minister highlighted Vodafone Idea’s fundraising progress and investment roadmap.
“Vodafone Idea has a robust capex plan in place, has raised one of the largest public offers in recent times,” he said, adding that cash flows remain stable and the company will look to invest further in strengthening its network.
He noted that while dues to the government remain an overhang, Vi should have room to raise some debt after relief recommendations are finalised.
On the government’s shareholding, Scindia made it clear that New Delhi does not intend to convert Vodafone Idea into a public sector entity.
“Govt is a shareholder and future roadmap has to be decided by the management. We will not increase stake or make Vodafone Idea a PSU. Moment you cross the threshold of 49% you are tethering on the border of making it a PSU and that’s not the intent of the govt,” he said.
