Rs 68,751-crore revival package for loss-making BSNL, MTNL

Tribune News Service

New Delhi, October 23

Putting to rest all speculations about the fate of loss-making BSNL and MTNL, the government today announced a revival package worth Rs 68,751 crore, including 4G spectrum allocation and voluntary retirement scheme for employees.

The Union Cabinet also approved merger of the state-owned telecom firms and till the completion of the process, MTNL will operate as a subsidiary of BSNL, Telecom Minister Ravi Shankar Prasad said here while sharing details of the revival package.

“In case of BSNL and MTNL, the government’s view is clear. These are strategic assets of India. The entire army network is maintained by BSNL.

BSNL has around 1.68 lakh employees and MTNL around 22,000.

“The VRS is voluntary; nobody can be forced to opt for it,” Prasad said. The total debt on both the companies stood at Rs 40,000 crore, of which half of the liability is on MTNL alone which operates in Delhi and Mumbai.

Both the companies have been demanding spectrum to start 4G services to remain competitive in the market. Telecom Secretary Anshu Prakash said the spectrum will be allocated to both the companies administratively within a month.

“The spectrum allocation to BSNL worth Rs 14,115 crore will be in lieu of equity shares and about Rs 6,295 crore for MTNL in lieu of preferential shares,” Prasad said.

About the package 

• The package includes raising of Rs 15,000 crore sovereign bonds to meet the immediate capital requirement of both companies, 4G spectrum allocation worth Rs 20,140 crore, Rs 29,937 crore for voluntary retirement scheme covering 50% of their employees, and Rs 3,674 crore for GST that will be levied on allocation of radio waves
• Employees above the age of fifty-three and half years will get 125% of their salary which they could have earned in balance period of their service
• Employees in the age bracket of 50 to 53.5 years opting for the voluntary retirement scheme will get benefit in the range of 80 to 100% of the remuneration to be paid in the balance period of their service