This could be a good first step towards a real transformation
The stock has gained 43% YTD against 20% jump in RIL and 15% fall in Voda Idea
The government announced a relief package for the telecom sector, providing a near term liquidity solution, particularly helpful to VIL, and addressed multiple long term issues of the sector.
The government budgeted Rs 1.33 trillion as non-tax revenues from the telecom sector in 2020-21, but only Rs 34,000 crore could be realised
Valuation gets a leg-up after bailout package
As part of the package, there could be some relaxation on payment of levies to the government including a one-year moratorium on spectrum installment due in April 2022.
In what may come as a major relief for the telecom sector, the Union Cabinet is likely to consider and discuss a relief package for the sector on Wednesday, sources said
The IMG, set up last year to address the telecom crisis, stayed away from suggesting any big reform while recommending steps around spectrum payment and a cap on air waves
The DoT's apex decision-making body, the Telecom Commission, has cleared some of the key recommendations made by IMG formed to chalk out relief measures for the debt-ridden sector