Vodafone Idea shares surged 15% in intraday trading after reports emerged that the Indian Cabinet might approve a waiver on bank guarantees for telecom operators. This decision would relieve companies from the obligation of furnishing guarantees for deferred spectrum payments acquired before 2022. Such a waiver could significantly ease financial pressure on the telecom sector, particularly for Vodafone Idea, which faces enormous debt challenges.
Cabinet’s Likely Approval:
The Department of Telecommunications (DoT) has recommended waiving bank guarantees for pre-2022 spectrum payments.
Impact on Vodafone Idea:
Vodafone Idea’s liabilities include ₹2.09 lakh crore in government dues, encompassing ₹1.39 lakh crore in deferred spectrum payments and ₹70,300 crore in AGR liabilities