The Indian government at present is not looking to consolidate its holdings in various telecom companies, including the stake in VodafoneIdea, MTNL and BSNL, to create a synergy.

“There is no such proposal under consideration,” junior Communications Minister Devusinh Chauhan said in Rajya Sabha (Upper House) on Friday in reply to a question from a ruling BJP Rajya Sabha member Sushil Modi who had asked whether the government had plans to “explore the merger of its holdings in telecom sector and avail of synergies”.

In a way, the government also ruled out for the present a merger of loss-making State-owned telcos MTNL, which has operations in Delhi and Mumbai, and BSNL whose networks straddle almost the whole of India.

The Indian government recently acquired approximately 38 percent equity stake in VodafoneIdea, the Indian ops of British telecom company Vodafone Plc., after VodafoneIdea took the option of converting outstanding financial dues to the government into equity.

Questioned further by Modi whether the government shall increase its holdings if Vodafone failed to service its deferred aggregated gross revenue (AGR) dues and spectrum liabilities after the moratorium, Chauhan said, “After the expiry of the moratorium period of 4 years or deferment and consequent upon review of prevailing situation, on the option of the government, (the) TSP (telecom service provider) will be permitted to pay the due installment by way of equity.”

Elaborating on an exit strategy from VodafoneIdea, the government said it can always “sell these shares at (an) appropriate time and thereby receive the amount due”.

Pointing out that the Ministry of Finance shall finalize the procedure, method, rate of conversion, mix of equity and preferential capital (if any) of its holding in Vodafone, in compliance with markets regulator SEBI guidelines, Chauhan reiterated, “The company will continue to be managed as professionally run private company.”