The government to provide relief to ailing telecom majors has allowed to defer payments for spectrum purchases by up to two years.
The announcement by the Centre comes after the Supreme Court ordered to pay at least Rs. 92,000 crore in past dues to the government within three months.
"Department of Telecommunication will give an option to the Telecom Service Providers (TSPs) to defer payment of the spectrum auction instalments due for 2020-21 & 2021-22, either for one or both years. These deferred amounts bill be spread equally in the remaining instalments to be paid by TSPs. Interest as stipulated while auctioning of the concerned spectrum will however be charged so that NPV (net present value) is protected," the government said.
The move will provide relief to older telecom firms along with Reliance Jio.
At the start of the trading session, Vodafone Idea rallied 9.90% to Rs. 7.77. While Airtel was trading down by 0.61% or Rs. 2.65 at Rs. 34.60 per share on the BSE.
At 9:30 am, the stock of Bharti Airtel was down 1.89% at R. 429 while Vodafone Idea traded lower by 9% at Rs. 6.44 on the BSE.