Vodafone Idea and Bharti Airtel rise as Supreme Court waives interest on licence fee dues of telecom companies

Vodafone Idea and Bharti Airtel rose on BSE on Tuesday (May 21, 2024) a day after the Supreme Court waived interest on the licence fee dues of telecom companies.

Vodafone Idea share price

The Vodafone Idea stock that closed at Rs 13.29 on Monday rose to Tuesday's high of Rs 13.60. 

The stock was trading higher by 2.03 per cent, or Rs 0.27, at Rs 13.56 at 9:51 am on Tuesday.

Bharti Airtel share price

The stock that closed at Rs 1,348.20 a day ago rose by 1.02 per cent to the day's high of Rs 1,362.00.

Bharti Airtel shares were trading flat at Rs 1,347.10 at 9:48 am on Tuesday.

What is the matter?

In a major relief to telecom companies, the Apex Court waived off interest on the licence fee.

As per the National Telecom Policy of 1999, telecom companies need to pay a one-time licence fee for entry, apart from another fee that was payable based on these firms yearly turnover.

However, earlier, telecom companies needed to pay only one-time fee and there was no provision of paying a fee based their turnover.

Telecom companies contested in the Supreme Court against this yearly fee.