🗣️ The Proposal That Sounds Easy… But Isn’t
On June 25, former Finance Minister P. Chidambaram reacted to Telecom Minister Jyotiraditya Scindia’s comment that duopoly is bad for the telecom sector. In his tweet, he proposed that the solution to this looming duopoly lies in inviting a “world-class telecom company” to take over Vodafone Idea (Vi), rather than infusing more government funds. On the surface, it sounds reasonable. After all, competition is good. But this suggestion is not just overly simplistic — it’s structurally unworkable.
💰 The Debt That Won’t Go Away
As of December 2024, Vodafone Idea’s total liabilities stand at approximately ₹2.17 lakh crore. What’s striking is the composition of this debt: over 95% is owed directly to the Government of India. These include ₹83,400 crore in AGR (Adjusted Gross Revenue) dues and another ₹1.19 lakh crore in deferred spectrum payments. Bank debt, in contrast, is minimal at around ₹2,330 crore.
