The Union Cabinet on Wednesday announced a big relief package for the stressed telecom sector. The cabinet approved 9 structural reforms and 5 processes for the telecom sector. These reforms will change the picture of the entire telecom sector. Since the announcement of the relief, the trend of rise in the shares of telecom companies is going on. For the second day in a row, the shares of telecom companies like MTNL, Vodafone Idea have jumped and investors have earned a lot of money.
Let us tell you that in the cabinet meeting, a decision has been taken to make the definition of AGR practical. All non-telecom revenue will be removed from AGR. 100% FDI has been allowed in the telecom sector through automatic route.
Vodafone Idea shares rose up to 15 per cent
Vodafone Idea has benefited the most from the announcement of the telecom relief package. Vodafone Idea shares rose up to 15 per cent on Thursday. During trading, the stock rose 14.89 percent to reach a price of Rs 10.26 on the BSE. The company’s market cap increased to Rs 29,482.51 crore.
Bharti Airtel stock at all-time high
After getting the relief package, the shares of Bharti Airtel, the country’s second largest telecom company, also registered a rise. Today the stock reached an all-time high of Rs 743.90 on BSE. Airtel’s stock has gained 7.17 per cent in two days.
The increase in the share of Vodafone Idea increased the wealth of investors by Rs 4,511.51 crore. The company’s market cap was Rs 24,971 crore at Tuesday’s closing price of Rs 8.69.
Investors benefited about 32 thousand crores
After getting a big relief from the government, the investors of Vodafone Idea and Bharti Airtel have turned silver. In just two days, his wealth has increased by about Rs 32,000 crore. Vodafone Idea investors got a profit of Rs 4,511.51 crore and those who put money in Airtel shares got a profit of Rs 27,350.3 crore.
How will you benefit from getting a relief package?
>> Under the relief package, the government has announced a four-year moratorium for AGR dues. Bharti Airtel, Vodafone Idea and Reliance Jio owe the Telecom Department about 92000 crores. This is in the form of license fee, while 41 thousand crores is in the form of spectrum usage fee.
>> The government will change the rules regarding AGR calculation. Non-telecom revenue will be kept out of this. A detailed guideline regarding this will be issued in the next few days. Apart from this, annual compounding will be started for spectrum charges. Currently it is monthly compounding. The interest rate has been fixed at MCLR + 2 percent.
>> Calculation of spectrum user charge will now be compounded annually. If not needed, it can be surrendered and can also be shared with another company. The government will release the calendar regarding spectrum auction, as well as the mobile tower set-up process will also be simplified.
>> 100% FDI has also been approved to increase liquidity. At present it was 49 per cent. Its new investments will come and infrastructure development will improve. Also new employment opportunities will be created. Vodafone Idea seems to be getting the most from today’s announcements.
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