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India Cabinet Said to Not Take Up Proposal for Telecoms Financial Relief Measures

India’s federal cupboard didn’t take up proposals on Wednesday for offering monetary aid to the nation’s cash-strapped telecoms sector, a authorities supply mentioned.

The cupboard was broadly anticipated to take a call on a so-called aid package deal for the telecoms business, which might have helped all wi-fi carriers however particularly the embattled Vodafone Idea.

The supply didn’t specify why the proposal was not mentioned.

Shares in Vodafone Thought have been down 1.2 % whereas Bharti Airtel fell 0.2 % at 0751 GMT (1:21pm IST) on information that the cupboard was holding off on measures to assist the business.

Each shares had rallied on Tuesday within the hopes of presidency assist.

India’s telecoms sector was upended by tycoon billionaire Mukesh Ambani’s managed Reliance Jio Infocomm when it entered the market in late 2016 with free voice and cut-price knowledge plans.

Jio additionally pushed a number of rivals out of the market, whereas others – such because the Indian unit of Britain’s Vodafone and native Idea Cellular – have been pressured to regroup.

The sector was additionally hit by a Supreme Courtroom ruling final 12 months which forces carriers Bharti Airtel and Vodafone Thought to provide in to a authorities demand for dues which they’ve lengthy contested.

Vodafone Thought has paid the federal government Rs. 7,854 crores in telecoms dues, regulatory filings present, however nonetheless owes roughly Rs. 50,000 crores.

Bharti Airtel has mentioned it paid dues estimated at Rs. 18,000 crores, however authorities figures present it owes an additional Rs. 25,976 crores.

Vodafone, which has a web debt of Rs. 1,91,000 crores, has beforehand raised severe issues about its skill to remain afloat with out authorities assist and its billionaire non-executive chairman stepped down final month.

© Thomson Reuters 2021

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