In a statement, Kumar Mangalam Birla, Chairman, Aditya Birla Group, hailed the Cabinet decision of providing reliefs to the telecom sector.
The relief package includes a four-year moratorium on payment of statutory dues by telecom companies as well as allowing 100 per cent foreign investment through the automatic route.
The Cabinet has approved the inclusion of only revenues earned from telecom services in the adjusted gross revenue and removal of penalty on dues to be paid to the government prospectively.
The decision is expected to offer relief to companies such as Vodafone Idea owe crores of rupees in the form of unprovisioned statutory dues.
In a statement, KM Birla said: "The pathbreaking reforms announced by the government today will go a long way in unshackling the telecom sector. These reforms demonstrate the government's firm commitment to ensuring healthy growth of the industry.
"The measures also reflect the decisiveness of the Prime Minister, the Telecom Minister, and the government to address long-standing issues. These reforms will bring alive the digital aspirations of 1.3 billion people and accelerate India's journey to be a digitally powered economy as envisaged by our Honorable Prime Minister."
Nick Read, CEO, Vodafone termed it as a 'constructive initiative' by the government.
"We commend the resolve shown by the Government of India, under PM Modi's leadership, to find a comprehensive solution that would support a competitive and sustainable telecom sector in India. Although the sector has struggled for many years, we expect that the Government's constructive initiative announced today--along with the continued strong support of the Telecom Minister and Finance Minister--will be the beginning of a new era for India's digital ambitions and for VI's continued contribution to creating an inclusive and sustainable digital society to the benefit of all citizens."