Government of India has once again given a very big concession to Vodafone Idea. Instead of collecting Rs.36,950 crore amount as dues from Vodafone Idea, government of India has accepted shares from that company. This Rs.36,950 crore is spectrum payment dues, to be paid by Vodafone Idea to government of India. Already in 2023 also, Vodafone Idea could not make payment of Rs 16,333 crore, for which, government of India accepted shares from Vodafone Idea. Vodafone Idea is not a government of India company, but still, the government of India is showing unlimited kindness for that company. Presently, government of India has invested totally Rs 53,283 crore in Vodafone Idea and is having a share holding of 48.99%. In fact, government of India is the biggest share holder in Vodafone Idea now. Vodafone UK, which is the original promotor of Vodafone Idea, is having only 16.1% shares now. However, the beauty is that, government of India, which is having 48.99% shares in Vodafone Idea, is not having any control in the Management of that company. Government of India is not having even a single director in the Board of Directors of Vodafone Idea. Complete management is with the minority share holders. This is how people’s money is being handed over to big corporates by Modi sarkar.
HUGE CONCESSIONS TO VODAFONE BY CENTRE
01 Tuesday Apr 2025
Posted in Uncategorized
VAN Namboodiri's Blog 
Since the Government of India (GoI) holds the largest stake (48.99%) in Vodafone Idea, it has certain rightful roles that should be exercised to protect public funds and ensure good governance. These include:
Board Representation & Governance Rights
Board Seats: GoI should have proportional representation on Vodafone Idea’s Board of Directors, ensuring accountability in decision-making.
Voting Rights: As the largest shareholder, GoI should exercise its voting power on major corporate decisions, including mergers, acquisitions, and capital expenditure.
Financial Oversight & Risk Management
Ensuring Financial Prudence: GoI should push for a robust financial turnaround plan to avoid further bailouts.
Audits & Transparency: Independent audits should be conducted to ensure transparency in fund utilization.
Dividend Policy: If Vodafone Idea returns to profitability, GoI should demand dividends as a return on its investment.
Strategic Role & Public Interest Protection
Telecom Infrastructure Development: As a key stakeholder, GoI should ensure Vodafone Idea contributes to 5G expansion, rural connectivity, and digital India initiatives.
Fair Market Competition: The government must prevent Vodafone Idea from receiving unfair advantages that distort competition.
Consumer Protection: Ensure that quality of service, fair pricing, and customer rights are upheld.
Exit Strategy & Shareholder Value Maximization
Divestment Plan: The government should develop a strategy to gradually reduce its stake once Vodafone Idea stabilizes, ensuring public funds are recovered at a fair valuation.
Attracting Investors: The government can push Vodafone Idea to bring in strategic investors to improve its capital structure and reduce dependence on state support.
Policy Influence & Regulatory Compliance
Ensuring Compliance: Vodafone Idea must comply with telecom regulations, spectrum payments, and licensing conditions.
Policy Advocacy: As a major stakeholder, GoI should ensure that policy decisions benefit both the telecom industry and national interests.
Since the GoI has more shares than Vodafone UK (the original promoter), it is entitled to a significant say in these matters. However, its passive stance raises concerns about whether public funds are being used in a responsible and strategic manner.