Cabinet did not take up proposal for telecom relief measures: Report

Union cabinet on Wednesday did not take up the proposals for providing financial relief to India’s debt-laden telecom sector, a government source said.

The cabinet was widely expected to take a decision on a so-called relief package for the telecoms industry, which would have helped all wireless carriers but especially the embattled Vodafone Idea.

Telecom stocks gave up gains after a source said the cabinet did not take up a proposal for telecom relief measures.

The blue-chip NSE Nifty 50 index fell as much as 0.62% to 17,254.20 and the benchmark S&P BSE Sensex was down 0.61% at 57,924.80.

Both indexes were muted for most of the session until 0720 GMT.

Earlier in the day, telecom stocks were on investors’ radar, with a news report claiming the telecom department is devising measures to improve health of the debt-laden sector. DoT has proposed a four-year moratorium on adjusted gross revenue and spectrum payments besides a reduction in spectrum usage charge, prospectively, according to the report

Bharti Airtel Ltd hit a record high of Rs 683.80, while peer Vodafone Idea Ltd surged as much as 7.9% to be up nearly 20% so far this week.