The Union Cabinet has approved a crucial plan to provide relief to the ailing telecom sector on Wednesday. The relief package will provide much-needed relief to telecom companies like Vodafone Idea and Bharti Airtel.
The development has been confirmed by a senior government official who spoke to news agency Reuters. More details about the telecom relief package will be shared during a press briefing scheduled later in the day.
As per earlier reports, the relief package is likely to include a four-year moratorium on adjusted gross revenue (AGR) related dues besides allowing telecom firms to surrender unused spectrum. The relief package will also include some other measures that will further ease the burden on telcos.
The relief package will benefit both Vodafone Idea and Bharti Airtel as the telcos have to repay the biggest chunk of AGR dues. While Bharti Airtel’s financial position is much better than Vodafone Idea, the relief measure will help the company’s future plans to compete with Reliance Jio.