Despite the flat session of the Indian stock market, the Vodafone Idea shares experienced a significant intraday gain. While writing the article, the shares are trading with a 15 per cent jump. Other telecom stocks also saw a rise in the early trade today.

Shares of Vodafone Idea zoomed over 18% to hit an intraday high of Rs 8.28 per share on the NSE. The telecom stock broke out from a downward sloping resistance trendline and recorded its biggest single-session gain in over 10 months,

Today's sharp upmove in VIL shares came after it was reported the Union Cabinet approved a proposal to waive the bank guarantees (BG) that telecom operators were required to provide for spectrum purchases up to 2022.

Vodafone Idea is expected to be the most benefitted among other industry players as it owes Rs 24,700 crore on bank guarantees, reports said.

The Indian government waived bank guarantees for telecom spectrum payments due before 2022. This move provides significant relief to Vodafone Idea, Airtel, and Jio, freeing up funds for network improvements.

The Union Cabinet on Tuesday announced a significant relief measure for the telecom sector companies, which is the waiver of bank guarantees (BGs) for spectrum acquired in auctions held before 2022 in order to ease the financial burden on telecom operators in India.

Telecom stocks such as Vodafone Idea, Indus Towers, MTNL, and Bharti Airtel were in focus following reports citing that the Union Cabinet approved waiver of bank guarantees for telecom operators on spectrum purchased before 2022.

As markets opened, shares of Vodafone Idea jumped 15 per cent surpassing Rs 8 apiece, while MTNL shares soared almost 9 per cent to reach Rs 51.45 per stock in the market