<p>New Delhi: The central government has no plans to raise its stake in the cash-strapped telecom firm Vodafone Idea beyond the existing 49%, Union Communications Minister Jyotirditya Scindia said on Thursday.</p>.<p>Talking to reporters at the India Mobile Congress, the minister said raising stake beyond its existing level would transform the private telecom operator into a public sector undertaking.</p>.<p>Scindia clarified that the government has no plans to convert Vodafone Idea into a public sector firm.</p>.<p>As per the Companies Act, 2013, if the government, central or state, owns 51% or more of the paid-up share capital then that company is defined as a government company.</p>.<p>The central government has become the largest shareholder of Vodafone Idea by converting the company’s spectrum payment dues into equity shares. However, the UK-based Vodafone Plc and Aditya Birla Group retain operational control of the company, which was formed in 2018 by merging Vodafone India and Idea Cellular. </p>.BSNL 4G towers to be upgraded to 5G in 6-8 months: Jyotiraditya Scindia.<p>At the time of merger it was India’s largest telecom operator. Due to mounting debt the company is now struggling to survive. Vodafone Plc’s stake in the company has now declined to 16.1%, Aditya Birla Group’s to 9.4%.</p>.<p>Share price of Vodafone Idea closed 0.11% lower at Rs 9.03 at the BSE on Thursday.</p>.<p>Speaking about the growing importance of the telecom sector in the economy, Scindia said the contribution of the telecom sector to India’s GDP is estimated to increase to 20% in the next 12% from the current around 12–14%.</p>.<p>“The last 10 years have seen an exponential change in the telecom and digital sector. We have today 1.2 billion subscribers — it’s the largest penetrated market in the world,” he said.</p>.<p>“We have 20% of the world’s mobile subscribers. Internet connectivity has surged from 250 million to 974 million users, while broadband connectivity has grown from 60 million to 934 million users in the last decade,” Scindia added.</p>
<p>New Delhi: The central government has no plans to raise its stake in the cash-strapped telecom firm Vodafone Idea beyond the existing 49%, Union Communications Minister Jyotirditya Scindia said on Thursday.</p>.<p>Talking to reporters at the India Mobile Congress, the minister said raising stake beyond its existing level would transform the private telecom operator into a public sector undertaking.</p>.<p>Scindia clarified that the government has no plans to convert Vodafone Idea into a public sector firm.</p>.<p>As per the Companies Act, 2013, if the government, central or state, owns 51% or more of the paid-up share capital then that company is defined as a government company.</p>.<p>The central government has become the largest shareholder of Vodafone Idea by converting the company’s spectrum payment dues into equity shares. However, the UK-based Vodafone Plc and Aditya Birla Group retain operational control of the company, which was formed in 2018 by merging Vodafone India and Idea Cellular. </p>.BSNL 4G towers to be upgraded to 5G in 6-8 months: Jyotiraditya Scindia.<p>At the time of merger it was India’s largest telecom operator. Due to mounting debt the company is now struggling to survive. Vodafone Plc’s stake in the company has now declined to 16.1%, Aditya Birla Group’s to 9.4%.</p>.<p>Share price of Vodafone Idea closed 0.11% lower at Rs 9.03 at the BSE on Thursday.</p>.<p>Speaking about the growing importance of the telecom sector in the economy, Scindia said the contribution of the telecom sector to India’s GDP is estimated to increase to 20% in the next 12% from the current around 12–14%.</p>.<p>“The last 10 years have seen an exponential change in the telecom and digital sector. We have today 1.2 billion subscribers — it’s the largest penetrated market in the world,” he said.</p>.<p>“We have 20% of the world’s mobile subscribers. Internet connectivity has surged from 250 million to 974 million users, while broadband connectivity has grown from 60 million to 934 million users in the last decade,” Scindia added.</p>