Vodafone Idea shares jump 19%, other telcos rally too amid reports Cabinet approves proposal to waive bank guarantees

Telecom stocks were experiencing a stellar rally on Tuesday, November 26, amid news reports that the Union Cabinet has approved the waiving of bank guarantees for telecom operators on spectrum purchased before 2022.

The move has come as a relief to Vodafone Idea (Vi), which owes the government over ₹24,700 crore on bank guarantees (BG), Moneycontrol reported.

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Domestic telecom operators, including Bharti Airtel and Vodafone Idea, collectively hold more than ₹30,000 crore in BG obligations, the report added.

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The report further said that by extending this relief to older spectrum holdings as well, the government aims to reduce financial stress in the telecom sector and strengthen its stability.

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Tata Teleservices Maharashtra (TTML) was trading nearly 12% higher at ₹77.18 apiece on the BSE. Mahanagar Telephone Nigam Limited (MTNL) stock was trading around 5% higher at ₹49.60.

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Vodafone Idea had highlighted its ongoing financial difficulties as it sought government assistance to eliminate the requirement for bank guarantees (BGs) to secure its spectrum payments.

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