New Delhi: The government has no plans to increase its shareholding in Vodafone Idea (VIL) as it does not want the telecom operator to turn into a public sector undertaking (PSU), Communications Minister Jyotiraditya Scindia has said.
Sending out a strong message to Vodafone Idea, Scindia told PTI in an interview that it is now the telco’s job to ensure it performs.
After the recent conversion of Rs 36,950 crore of outstanding spectrum auction dues into equity, the government now holds 48.99 percent shares in Vodafone Idea Ltd. Prior to this, the government’s stake was about 22.6 percent.
It is pertinent to mention that any additional stake could potentially turn the company into a PSU.
“It is now their (VIL’s) job to ensure that they perform. Government today has 49 per cent of the company. There is no intention for the government to make that into a PSU. So we will stick to 49 per cent,” Scindia said.
On his assessment of impact of dues conversion on VIL’s health and future competitiveness, specially given wide skepticism that the telco may still struggle to meet future payment obligations, the minister said: “That question should be directed at VIL...it is now their job to ensure that they perform”.
On the issue of MTNL’s default on bank loans, the minister noted that it has substantial land bank and informed that same will be monetised for clearing dues of banks and debt.
“MTNL now has a large amount of asset base in terms of its land bank. We are today progressing on that. And through NLMC - National Land Monetisation Committee - that land will be divested and through the proceeds of that land, all dues to banks and debt will be taken care of,” Scindia assured. He did not specify timelines that may be involved for such monetisation, and said he is persuing the matter.