Vodafone Idea, lenders jump after govt nod to telecom package

Shares of Vodafone Idea Ltd surged nearly 20% and banks with exposure to the telecom firm jumped on Thursday, a day after India’s federal cabinet approved a relief package for the troubled sector.

A four-year moratorium on airwaves payments due to the government and raising the tenure of airwaves held by firms were a part of the package, along with a change in the contentious definition of adjusted gross revenue (AGR) to exclude non-telecom income.

Analysts said that the measures could restore the idea of a three-player telecom market for the time being, but it does not provide a long-term solution.