Government confident of Vodafone Idea’s expansion; no comment on AGR dues waiver: Telecom minister Scindia

Union Minister for Communications and Development of the North Eastern Region, Jyotiraditya Scindia

Union Minister for Communications and Development of the North Eastern Region, Jyotiraditya Scindia, expressed confidence in Vodafone Idea’s 4G and 5G network expansion plans, emphasizing the importance of maintaining healthy competition in the telecom market.

“We own roughly about 23% of Vodafone Idea. Today, Vodafone Idea is about 9.5 percent of the mobile market. Our outlook towards Vodafone is that we, the Government of India, believe that there must be healthy competition in the telecom market. There are very few markets in the world that have four players. India is one such vibrant market. We have four players,” Scindia told Moneycontrol in an interaction on March 18.

He added that Vodafone Idea has successfully raised ₹20,000-25,000 crore in equity and is expected to proceed with its expansion plans.

On Vodafone Idea’s debt-funding plans—reportedly dependent on government relief on past AGR dues—Scindia said, “...that is the company's outlook.” However, he declined to comment on reports suggesting that the government is considering a ₹1 lakh crore waiver of AGR dues, stating, “...at this point, I will not comment on that because that's not on my table.”

Vodafone Idea CEO Akshaya Moondra stated on February 12 that the company is confident in the government’s resolution of the AGR issue, given its role as the largest stakeholder. He emphasized that telcos are regularly discussed with the government.

He also pointed to the recent bank guarantee relief as a clear indication of the government’s continued commitment to supporting the telecom sector through necessary reforms. Moondra confirmed that Vodafone Idea has restarted discussions with banks for debt funding, but lenders are awaiting clarity on the AGR issue and the government’s final stance.